By Demilade Aderibigbe
Guinness Nigeria Plc, a foremost total beverage alcohol company in Nigeria and a subsidiary of Diageo Plc., released its unaudited financial results for the nine-month period, ended, 31 March 2024, revealing both resilience and adaptability in navigating a turbulent economic landscape.
In a year marked by unprecedented challenges, Guinness Nigeria delivered a commendable 28% year-on-year revenue growth, reaching ₦220.3 billion compared to ₦172.47 billion in the same period last year.
This notable surge was particularly pronounced in Q3, with a remarkable 44% acceleration, signifying a strategic pivot amidst evolving market dynamics.
Despite grappling with soaring inflation rates, currency devaluation, and escalating food insecurity, Guinness Nigeria demonstrated remarkable resilience, leveraging proactive pricing strategies and optimized product offerings, focusing on premium categories to sustain growth momentum.
The company also intensified its focus on consumer engagement and trade support, leveraging its digital platforms. Notably, categories such as Non-Alcoholic Malt, Ready-to-Serve beverages, and International Premium Spirits witnessed substantial revenue growth, underscoring the effectiveness of these strategies.
In line with its revenue growth, operating profit surged by 27%, reaching ₦ 22.21 billion fuelled by the strong revenue performance and intensified drive for productivity across the organisation despite extreme inflationary tensions.
However, amidst these triumphs, challenges persisted, notably in the form of significant unrealised forex losses amounting to ₦81 billion. This was attributable to the continued devaluation of the Naira, closing the quarter at N1,351/$1.
Despite this setback, recent trends suggest a reversal, with the Naira exhibiting signs of stability in recent weeks, offering a glimmer of hope for potential exchange rate gains in the last quarter of the fiscal year.
Looking ahead, the Board remains confident in the company’s well-crafted strategy. The Board is committed to continuously evaluating this strategy in response to the evolving business landscape, to deliver returns to its shareholders and create long-term value for all stakeholders.
Adebayo Alli, Managing Director/CEO, Guinness Nigeria Plc., said: “While the current macroeconomic environment will continue to present challenges, I am confident in the resilience of our business and our ability to navigate the volatility. Our focus remains steadfast on innovation, and stepping up operational excellence to meet our consumers’ evolving tastes and preferences. Led by our strategic vision that prioritizes long-term sustainability and shareholder value, we are poised to emerge even stronger”.
