Guinness Nigeria Posts 1,147% Increase In Net Profit

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Guinness Nigeria Plc has announced its audited results for the period ended June 30, 2022 revealing 1,147 per cent increase in profit after tax, with double-digit revenue growth across all key categories, despite the challenging macro environment.

The audited results which were released to the Nigerian Exchange Group (NGX) indicated that profit after tax moved from N1.255 billion in 2021 to N15.651 billion in 2022.

Revenue of the company increased by 29 per cent to N 206.822 billion from N160.416 in 2021, while gross profit up by 310 per cent to N 72.663 billion.
Also, operating profit increased by 142 per cent, while net finance charges decreased by 94 per cent year-on-year for its financial year end, June 2022.
Speaking on the results, managing director/CEO, Guinness Nigeria, Mr. Baker Magunda said: “the performance of fiscal 2022 showed that the business delivered growth despite the challenging external environment characterized by rising inflation and heightening operating costs.
“Gross profit grew 59 per cent in the year as revenues grew ahead of cost of sales. Cost of sales increased by 17 per cent; largely due to inflationary pressures, sales volume growth, Naira devaluation impacting imported materials, air-freight cost increases and a shift towards more expensive can products.”
Magunda explained that, “strong double-digit revenue growth was delivered across all key categories driven by our strategic focus brands, Malta Guinness and Guinness, as well as strong growth in local and imported spirits and the ready-to-drink category. This growth reflects the benefits of price increases taken across all categories, leading in spirits, and followed by beer, and also the benefits of favorable brand mix.”
The company, however, revealed that its marketing spend increased 50 per cent versus last year in line with its strategy to invest and support its growth priorities and the recovery of the on-trade, following the easing of Covid-19 restrictions.
“Distribution expenses increased by 36 per cent compared to last year primarily due to cost inflation on freight and diesel. The net result was a 142 per cent increase in operating profit as against prior year,” he said.
Going into the new fiscal year, Magunda said: “we are conscious of the continued challenging operating environment with double-digit inflation and pressured consumer income spending.
“However, we will continue to focus on our strategy; leveraging technology to optimize our route-to-consumer, innovating at scale to satisfy our consumers and improving cost control.”
The chair of Guinness Nigeria, Dr. Omobola Johnson assured that “the board will continue to support management in its efforts to build a business that aims to deliver growth consistently and sustainably for stakeholders.”
“We remain confident that the strategy is comprehensive and robust, and that we are making the right investments in the company to ensure our long-term competitiveness.”