Nigeria: Guinness Nigeria Plc sees operating profit rise by 266% in first half to end of December
Guinness Nigeria Plc, a subsidiary of Diageo Plc, has continued its path to sustained growth with an impressive 266% increase in its Operating Profit as stated in the unaudited results for the first half year period ended 31st December 2021, The Nation Newspaper reported on January 30.
The results which were released to the Nigerian Exchange Group (NGX), revealed that the company reported a significant Profit After Tax (PAT) of N8.820 bln, a huge 2879% improvement from corresponding period in the 2020-2021 financial year.
According to a statement from the firm, Guinness Nigeria Plc Managing Director/CEO, Baker Magunda, affirmed that the earnings resulted from headline price increases in key brands; a reflection of the resilient consumer demand; and improved outlet coverage.
The company’s revenue grew by 51% to N109.1 billion in half-year ended December 2021, as it continued to optimize its product distribution system for all segments. The brewer also reported that the impacts on the revenue during the period was engendered by a number of factors including inflationary pressure, forex devaluation impacting imported materials and air freight cost increase.
“Revenue growth across all key categories is driven by the company’s strategic focus brands; Malta Guinness and Guinness, as well as double-digit growth in local and imported spirits and the ready-to-drink category,” Magunda said.
It is pertinent to note that the company continued to ride on the strong efforts of recovery in Q1 of financial year 2021- 2022, despite a challenging external environment due to continued restrictions related to COVID 19, high inflation and heightening operating costs. The company financing costs was also positively impacted as net financing costs decreased by 74% as a result of reduction in the net interest cost arising from improved cash generation, despite the devaluation of the Naira.
On her part, Dr. Omobola Johnson, the Board Chair of Guinness Nigeria Plc, assured “The Board remains confident that our strategy is sound and will in the long term continue to drive value to all stakeholders. The Board will continue to support the management in its efforts to build a business that aims to consistently deliver growth for stakeholders.”
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