Guinness Nigeria Plc, a leading beverage company in Nigeria, offering a wide range of both alcoholic and non-alcoholic drinks has announced its financial results for the fiscal year ending June 30, 2024, highlighting a significant 31% year-on-year revenue growth despite facing tough economic conditions.
For the twelve months ending June 30, 2024, Guinness Nigeria reported a remarkable 31% increase in revenue compared to the previous year. The growth was even more impressive in the second half of the year, with a 41% rise in revenue, up from a 20% increase in the first half. This achievement is particularly notable given the economic challenges, including high inflation, currency devaluation, the removal of fuel subsidies, and food insecurity, which have reduced consumer disposable income.
The Managing Director of Guinness Nigeria, Adebayo Alli, emphasized the company’s success during the review period, noting that revenue reached ₦299.48 billion, up from ₦229.44 billion in the same period of 2023. This remarkable 31% year-on-year revenue growth was driven by optimized product categories, innovative offerings, and strategic price increases to offset rising costs. Non-alcoholic malt, ready-to-serve beverages, and international premium categories all showed notable growth compared to the previous year.
Alli highlighted the company’s efforts to engage with consumers through digital platforms, activations, and enhanced brand visibility, which contributed to the revenue growth. Despite facing increased costs due to inflation, utility price hikes, and currency devaluation, the company managed to achieve a 9% rise in operating profit, thanks to strong revenue performance and productivity gains.
Adebayo Alli, the Managing Director of Guinness Nigeria, expressed confidence in the company’s future. “We are extremely proud of our team’s ability to deliver such strong financial performance amidst significant macroeconomic headwinds. Our strategic focus on category mix optimization, 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,” Alli said.
However, the company faced a 37% increase in the cost of sales due to inflation-driven hikes in raw material prices, unprecedented utility cost increases, and currency devaluation. Despite these challenges, operating profit rose by 9%, driven by strong revenue performance and productivity gains across the organization.
Dr. Omobola Johnson, Chairman of the Board of Directors at Guinness Nigeria, reiterated the company’s commitment to adapting its strategy to the evolving business landscape. “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,” Johnson stated.
