Guinness Nigeria Plc, has announced its unaudited financial results for the quarter ended September 30, 2024.
According to the report announcing the strategic turnarounds in the organisation, the company delivered a remarkable 111per cent year-on-year revenue growth, driven by innovative product offerings, enhanced consumer engagement, and effective expansion of its retail footprint.
The report stated that 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 diverse portfolio and its focus on building strong consumer connections.
Meanwhile, despite this top-line growth, the company faced significant cost pressures, primarily due to inflation and the continued depreciation of the Naira, which increased the cost of raw materials, packaging, and utilities.
Chairman of the Board of Directors, Dr. Omobola Johnson, in her reaction to the result, said: “Our robust 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, has impacted our profitability. 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. We remain focused on creating sustainable value for all our stakeholders.”
Guinness Nigeria reported a 170per cent increase in cost of sales, driven by volume growth alongside rising input costs and exchange rate fluctuations. This led to a decline in operating profit, with the company posting a loss before tax of N16.0 billion. However, a favorable tax position, primarily due to deferred tax assets, reduced the overall loss to N12.1 billion
Also speaking, Guinness Nigeria, Managing Director, Girish Sharma, expressed optimism about the future stating that: “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 that inflation is 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. We are confident that these actions will drive our financial recovery and position Guinness Nigeria for sustainable success.”
Looking ahead, he pointed out that Guinness Nigeria remain committed to leveraging its strong brand portfolio, driving operational efficiencies, and exploring opportunities for innovation and further improvement in local sourcing. Sharma pointed out that the leadership team is actively implementing strategies to mitigate the impact of the macroeconomic environment while maintaining a sharp focus on delivering value to shareholders.
