Guinness Nigeria Plc declared a 31% year-on-year revenue increase for the fiscal year that concluded on June 30, 2024.
A statement by Guinness on Tuesday said the strong performance was more pronounced in the second half of the year, with revenue growth accelerating to 41 per cent, up from 20 per cent in the first half.
It stated that the feat was noteworthy in light of the difficult macroeconomic climate, which was marked by falling consumer disposable income as a result of record-high inflation, currency depreciation, the elimination of fuel subsidies, and food shortages.
The firm added that innovative offers, a well-balanced category mix, and targeted price hikes to counteract growing expenses were the main drivers of revenue growth.
“Non-alcoholic malt, ready-to-serve beverages, and international premium categories demonstrated resilience, recording notable growth compared to the previous year. The company also intensified its trade and consumer engagement efforts through digital platforms, activations, and captivating brand visibility.
“Despite these accomplishments, the company faced the increased cost of sales, which rose by 37 per cent due to inflation-driven hikes in raw material prices, unprecedented utility cost increases, and currency devaluation. Nonetheless, operating profit rose by nine per cent propelled by strong revenue performance and intensified productivity gains across the organisation,” part of the statement read.
The Managing Director of Guinness Nigeria, Adebayo Alli, expressed confidence in the company’s trajectory, saying, “We are extremely proud of our team’s ability to deliver such strong financial performance amid significant macroeconomic headwinds. Our strategic focus on category mix optimisation, innovative product offerings, and targeted price adjustments has been key to navigating these challenges and driving growth.”
“Looking ahead, we are committed to our mission of transforming Guinness Nigeria with a strong focus on winning differently as we move into FY25. We will continue to leverage digital innovation, deepen our consumer engagement, and invest in our people and brands to ensure sustained growth and value creation for our stakeholders.
“The continued currency devaluation posed significant challenges, with the spot rate moving from N759.03/$1 at the start of the year to N1,540/$1 at the end of the financial year. This resulted in a substantial unrealised forex loss and a loss before tax of N73.68b. Despite these challenges, the board remains confident in the company’s well-crafted strategy.”
The chairman of the firm, Dr Omobola Johnson, said, “We remain committed to continuously evaluating our strategy against the evolving business landscape to ensure we deliver returns to our shareholders and create long-term value for all stakeholders. Our performance this year demonstrates the resilience and adaptability of our business in the face of economic challenges.”
