Guinness Nigeria Plc has continued its impressive growth trajectory, posting a profit after tax of N15.28billion in the unaudited third quarter (Q3) ended March 31, 2022, an increase of 731 percent from N1.84 billion reported in the unaudited third quarter (Q3) ended March 31, 2021.
The Company reported revenue of N159.4billion in Q3 2022, representing a 39 percent growth over the N114.96 billion reported in Q3 2021.
The results show an impressive performance and a significant improvement compared to the same period last year, a testament to an unwavering commitment to meeting consumer demands and the Company’s resilience in a challenging operating environment.
Commenting on the announcement, Managing Director/CEO, Guinness Nigeria, Mr. Baker Magunda, said: “In the first nine months of fiscal 22, Guinness Nigeria continued to grow on the back of the strong recovery in the first half of fiscal 22.
“The business has delivered growth in the challenging operating environment characterized by rising inflation and forex challenges in the three months ended March 31, 2022. Revenue grew by 39per cent to N159.4 billion, benefitting mainly from price increases across all brands and the favorable brand mix and resilient consumer demand.
“We have delivered revenue growth 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 has further showed that our strategy is sound, and we are unwavering in our commitment to ensuring our long-term competitiveness in Nigeria,” Magunda said.
He added that Gross Profit grew 76 percent in the period as revenues grew ahead of the cost of sales.
Cost of Sales increased by 24per cent, largely due to inflationary pressure, sales volume growth, forex devaluation impacting imported materials, air freight cost increase, and a shift towards more expensive can products. The Company also noted that its Marketing expenses increased 68% versus last year as it increased its marketing investments.
“We increased marketing investment to support our strategic growth priorities and the recovery of the on-trade. Distribution expenses also increased 36per cent driven by higher volumes, freight and diesel inflation and extended journey time for road transportation. All of our efforts delivered an operating profit growth of 200per cent to N22.9 billion,” Magunda added.