Guinness Nigeria Plc has posted N142.596 billion revenue for its second quarter (Q2), ended December 31, 2023.
The unaudited result released on the Nigerian Exchange Group (NGX) continued to show resilience in the face of a challenging macroeconomic environment, characterised by a marked decline in consumer spending due to escalating inflation, continuous naira devaluation and reduced cash in circulation.
The company posted a revenue of N142.596 billion for its half-year ended December 31, 2023, a growth of 20 per cent from N83.059 billion in 2022.
Guinness Nigeria showed a 31 per cent increase in operating profit in the period under review, while its reported revenue growth was primarily fueled by sound pricing strategies and a carefully optimised product mix, emphasising the premium categories.
The company further bolstered sales by increasing trade and consumer engagement initiatives, optimising its route-to-consumer strategy to broaden its outlet coverage, and leveraging its digital capabilities. Key categories, particularly Malt and Ready-to-Serve, experienced notable revenue growth, while others demonstrated more modest increases.
Impressively, the operating margin expanded by 90bps, fueled by a nine per cent increase in gross profit, gains from other income (Export Expansion Grant), and reduced operating costs, even as brand investment increased by 15 per cent.
The managing director/CEO of Guinness Nigeria, Mr Adebayo Alli, stated that, “while this was a commendable performance in the face of very challenging macro environment, regrettably, the persistent devaluation of the naira led to a substantial (N18 billion) unrealised foreign exchange loss, which caused a 161 per cent decline in profit before tax, closing the half-year at a loss of N4.4 billion.”
He, however, stated that, “management of the Company remains committed to taking all steps and proactive actions necessary to continue delivering value to its stakeholders.”
Also, the board chair, Dr. Omobola Johnson, stated that, “despite the significant macroeconomic challenges faced by the Company, the Board remains confident in the Company’s well-devised strategy and will continue to support management to implement the strategy in a manner that delivers sustainable value to all stakeholders.
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