A major participant in the market for total beverage alcohol, Guinness Nigeria Plc, today revealed its unaudited financial results for the quarter that concluded on September 30, 2024. The company’s creative product offerings, improved customer interaction, and successful retail footprint development propelled its impressive 111% year-over-year sales increase.

Revenue rose to N125.9 billion from N59.5 billion during the same time previous year, demonstrating the strength of Guinness Nigeria’s varied portfolio and its emphasis on fostering close relationships with customers. Inflation and the ongoing devaluation of the Naira, which raised the price of raw materials, packaging, and utilities, were the main causes of the company’s severe cost challenges despite this top-line gain.

The board of directors’ chair, Dr. Omobola Johnson, offered the following commentary on the findings:

Our strong market presence and the tenacity of our brands are demonstrated by our impressive revenue success. However, our profitability has been hurt by the challenging macroeconomic climate, which is marked by increased expenses and currency volatility. As a Board, we have faith that management can carry out the strategic plans required to improve our operations, boost productivity, and set up the company for long-term success. Our goal is still to generate long-term value for all of our stakeholders.

Due to volume growth, increased input prices, and currency rate volatility, Guinness Nigeria reported a 170% rise in cost of sales.

As a result, operational profit decreased, and the business reported a N16.0 billion loss before taxes. Nonetheless, the total loss was decreased to N12.1 billion by a favourable tax situation, mostly as a result of deferred tax assets.

“Our revenue growth demonstrates the strength of our brands and the effectiveness of our consumer engagement strategies,” said Girish Sharma, Managing Director of Guinness Nigeria Plc, who was upbeat about the future. Nonetheless, we are well aware of how our cost structure has been impacted by inflation and currency devaluation. Our top priorities right now are increasing operational effectiveness, turning a profit again, and enabling our personnel to provide greater value. We have no doubt that these steps will propel our economic recovery and set Guinness Nigeria up for long-term success.

Guinness Nigeria is still dedicated to utilising its robust portfolio of brands, increasing operational effectiveness, and looking into new and improved local sourcing options. While keeping a laser-like focus on providing value to shareholders, the leadership team is aggressively putting policies into place to lessen the effects of the macroeconomic climate.

With a clear plan in place to strengthen business resilience and take advantage of the prospects in Nigeria’s vibrant beverage sector, the firm is hopeful about the future even as it navigates these difficult times.

In reference to Guinness Nigeria Plc

With a broad range of products that appeal to consumers of both alcoholic and non-alcoholic beverages, such as malts, ready-to-drinks, spirits, stout, and beer, Guinness Nigeria is the leading total beverage alcohol firm in Nigeria. Guinness Foreign Extra Stout, Guinness Smooth, Malta Guinness, Orijin Bitters, Dubic Malt, Gordons Pink Berry, Gordons Orange Sunset, Smirnoff Ice, Smirnoff X1 Choco Vodka, and Smirnoff Pine-apple Punch are a few of its well-known and reputable products.

Guinness Nigeria fulfils its sustainability and responsibility commitments in three areas: encouraging positive drinking, promoting inclusion and diversity, and pioneering grain to glass sustainability. The company’s clear goal is to “be among the best performing, most trusted, and respected consumer products companies in Nigeria.” The business is still an advocate for community development and responsible drinking.