Guinness Nigeria Achieves 111% Revenue Growth Amid Economic Challenges, Eyes Strategic Recovery
Guinness Nigeria Plc, a prominent player in the Total Beverage Alcohol market, reported a 111% revenue surge in its unaudited financial results for the quarter ending September 30, 2024. This substantial growth, fueled by innovative product offerings, stronger consumer engagement, and an expanded retail network, saw revenue rise from N59.5 billion to N125.9 billion year-on-year. Despite these gains, inflationary pressures and the Naira’s depreciation intensified raw material, packaging, and utility costs, impacting overall profitability.
Board Chair Dr. Omobola Johnson highlighted the company’s resilience, acknowledging the challenging economic conditions affecting profits. “Our strong revenue performance underscores the robustness of our brand and market strategy. Yet, rising costs and currency fluctuations have impacted our profitability. We are confident in our management’s strategic initiatives to drive efficiency and sustainable growth for all stakeholders,” she stated.
The company’s cost of sales increased by 170%, mainly from volume growth and higher input costs, leading to a pre-tax loss of N16.0 billion. Favorable tax adjustments reduced this figure to an overall loss of N12.1 billion.
Managing Director Girish Sharma expressed optimism about the future. “Our revenue reflects the strength of our brands and consumer engagement strategies, but inflation and currency depreciation have significantly affected costs. Our immediate focus is on operational efficiency and restoring profitability, with a commitment to delivering greater value,” he noted.
Looking forward, Guinness Nigeria aims to leverage its strong brand portfolio and drive operational efficiencies. As the company continues to navigate economic challenges, it remains optimistic about enhancing business resilience and capturing growth opportunities within Nigeria’s dynamic beverage market.
