Guinness Nigeria Plc, a leading player in the total alcoholic beverages market, today announced its unaudited financial results for the quarter ended September 30, 2024. The company recorded a remarkable 111% growth in revenue from ‘year-over-year, through innovative product offerings, increased consumer engagement and effective expansion of its retail footprint.

Revenue increased from N59.5 billion in the same period last year to N125.9 billion, a testament to the strength of Guinness Nigeria’s diversified portfolio and focus on Establishing strong connections with consumers. Despite this revenue growth, the company has faced significant cost pressures, mainly due to inflation and the continued depreciation of the Naira, which have increased the cost of raw materials, packaging and public services.

Dr. Omobola Johnson, Chairman of the Board, commented on the findings:

“Our strong revenue performance reflects the resilience of our brands and the strength of our market presence. However, the difficult macroeconomic environment, characterized by rising costs and currency volatility, had an impact on our profitability. As a Board of Directors, we are confident in management’s ability to execute the strategic initiatives necessary to strengthen our operations, improve our efficiency and position the company for long-term growth. We remain focused on creating sustainable value for all our stakeholders.

Guinness Nigeria reported a 170% increase in cost of sales, driven by volume growth as well as rising input costs and exchange rate fluctuations.

This resulted in a decline in operating profit with the company posting a pre-tax loss of N16.0 billion. However, a favorable tax position, mainly due to deferred tax assets, reduced the overall loss to N12.1 billion.

Girish Sharma, Managing Director of Guinness Nigeria Plc, expressed optimism about the future, saying: “Our revenue growth demonstrates the strength of our brands and the effectiveness of our consumer engagement strategies. However, we are fully aware of the impact of inflation and currency depreciation on our cost structure. Our immediate goal is to improve operational efficiency, restore profitability and empower our teams to create more value. We are confident that these actions will contribute to our financial recovery and position Guinness Nigeria for sustained success.

Looking ahead, Guinness Nigeria remains committed to leveraging its strong brand portfolio, increasing operational efficiencies and exploring opportunities for innovation and improved local sourcing. The management team is actively implementing strategies to mitigate the impact of the macroeconomic environment while remaining strongly focused on creating shareholder value.

As the company navigates these challenging times, it remains optimistic about the future, underpinned by a clear strategy aimed at strengthening the resilience of the business and capitalizing on opportunities in Nigeria’s dynamic beverage market.

About Guinness Nigeria Plc

Guinness Nigeria is the leading alcoholic beverage company in Nigeria, with a broad portfolio of brands catering to consumers of non-alcoholic and alcoholic beverages, including malts, ready-to-drink beverages, spirits, stouts and beers. Some of its well-known and respected brands include Guinness Foreign Extra Stout, Guinness Smooth, Malta Guinness, Orijin Bitters, Dubic Malt, Gordons Pink Berry, Gordons Orange Sunset, Smirnoff Ice, Smirnoff X1 Choco Vodka, Smirnoff Pine-apple. Punch, among other things.
With a very clear ambition: “To be one of the most successful, trusted and respected consumer products companies in Nigeria”, Guinness Nigeria respects its sustainability and responsibility commitments which focus on three areas: promoting positive consumption, promoting inclusion and diversity. and pioneer of grain-to-glass sustainability. The company continues to be a champion of responsible consumption and community development.