Guinness Nigeria records 35% increase in profit in Q3 2021
... Revenue increased 20% ... Operating profit increased by 46% ... Marketing spend increased by 2%
Leading beverage alcohol company Guinness Nigeria, a subsidiary of Diageo Plc, has posted a revenue of N114,956,362,000 (one hundred and fourteen billion, nine hundred and fifty-six million, three hundred and sixty-two thousand) for the 9 months ended 31 March 2021 which represents a 20% growth over the same period last year. The Company reported a Profit After Tax of N1,838,049,000 (one billion eight hundred and thirty-eight million and forty-nine thousand) in the period under review which represents a 35% over same period last year.
The results show an impressive performance and a significant improvement when compared to the same period last year, a testament to an unwavering commitment to meeting consumer demands as well as the company’s resilience in a challenging operating environment.
Commenting on the announcement, Baker Magunda, Managing Director/CEO, Guinness Nigeria Plc said: “In the 3 months ended 31 March 2021, Guinness Nigeria has delivered a growth of 54% in the face of the challenging operating environment leading to a turnaround in the overall performance of the business in the 9 months of our financial year so far. This stellar growth in the third quarter of our financial year is the main driver of the year to date 20% revenue growth. The growth is encouraging however considering varying degrees of Covid-related restrictions which remain. Growth was primarily driven by increased off-trade channels sales and at home consumption. The strong growth is also partly because of a weak third quarter of the previous financial year, when VAT increase took place and COVID lockdown commenced.”
“We have delivered broad based growth driven by double digit growth across all our focus brands and categories has further showed that our strategy is sound, and we are making unswerving moves to ensure our long-term competitiveness in Nigeria. Despite reduction in exports, Guinness delivered double digit growth in volumes and revenue with the new Guinness Smooth innovation contributing significantly to this. Malta Guinness continued its strong growth mainly driven by the one way can format. Continued double-digit growth in local spirits, imported spirits and Ready-To-Drink (RTDs) tells us that these categories are on track to deliver their medium-term strategic revenue contribution to our business growth”, Magunda explained.
Operating profit grew by 46% as productivity savings in distributions and administration costs, and reduced spend due to some existing COVID restrictions mitigated inflation and foreign exchange devaluation impact on cost of sales. Profit after tax increased by 35%.
“The Management at Guinness Nigeria remains resolute in its business strategy, as well as its engagement of stakeholders across its value chain. We remain fiercely committed to having a positive impact on those around us and our consumers; and we continue to take giant strides towards keeping this commitment. We recently signed an MOU with the Federal Road Safety Corps for the adoption of our E-learning Responsible Drinking Education Module to complement the curriculum for training and testing drivers and everyone who chooses to drive on our roads as part of our efforts to champion responsible drinking. We also launched a new sustainability initiative globally through our Johnnie Walker brand, to ensure a more sustainable future for all. These efforts are in line with strategy for consistent delivery of value for all stakeholders.” Magunda added.
Mr. Babatunde Savage, Chairman of the Board of Guinness Nigeria Plc, in also commending the impressive result, said “The Board will continue to support the Management to build a business that will consistently deliver growth for all our stakeholders”.