Guinness Nigeria Achieves 111% Revenue Growth Despite Economic Challenges

Guinness Nigeria Plc has announced a remarkable 111% revenue growth in its financial results for the quarter ending September 30, 2024, overcoming significant economic hurdles. The unaudited report, released through the Nigerian Exchange (NGX), highlights a revenue increase to ₦125.9 billion from ₦59.5 billion in the same period last year. The growth, according to the company, reflects its diverse product offerings, innovative marketing efforts, and a broadening retail reach.

Guinness Nigeria attributes this revenue surge to strong brand performance and successful consumer engagement strategies, even as the company faces rising costs from inflation and currency depreciation. “Our robust revenue performance reflects the resilience of our brands and the strength of our market presence,” said Dr. Omobola Johnson, Chairman of the Board of Directors. However, Johnson acknowledged that macroeconomic pressures have affected the company’s overall profitability. “The difficult macroeconomic environment, characterized by rising costs and currency volatility, has impacted our profitability.”

Despite impressive revenue figures, Guinness Nigeria’s costs surged, with a 170% increase in the cost of sales due to higher volumes, raw material prices, packaging expenses, and the naira’s declining value. This cost rise ultimately led the company to report a pre-tax loss of ₦16 billion. However, through favorable tax positioning, largely involving deferred tax assets, the total loss was reduced to ₦12.1 billion.

Managing Director Girish Sharma also commented on the results, emphasizing the strength of the company’s strategies. “Our revenue growth demonstrates the strength of our brands and the effectiveness of our consumer engagement strategies,” he said. Yet, he highlighted the reality of cost pressures due to inflation and currency depreciation. “We are fully aware of the impact that inflation and currency depreciation have had on our cost structure. Our immediate focus is on improving operational efficiency, restoring profitability, and empowering our teams to deliver more value.”

Looking to the future, Sharma outlined steps to boost the company’s resilience amid economic uncertainty. “Guinness remains committed to leveraging its strong brand portfolio, driving operational efficiencies, and exploring opportunities for innovation and further improvement in local sourcing,” he stated, adding that the leadership team is proactively working to ease the impact of economic challenges on the business.

The board expressed confidence in the company’s potential for long-term growth, with a commitment to sustainable value for stakeholders. “As a Board, we are confident in management’s ability to execute the necessary strategic initiatives to strengthen our operations, enhance efficiency, and position the business for long-term growth,” Johnson affirmed.

With an emphasis on operational efficiency and a robust product portfolio, Guinness Nigeria plans to navigate current economic pressures while delivering value to shareholders. The company’s leadership team remains optimistic that these strategies will support a financial turnaround, positioning Guinness Nigeria for sustained success in a challenging economy.