Despite lingering economic headwinds, Guinness Nigeria Plc, a subsidiary of Diageo Plc, recorded an impressive performance in the year-end.
According to its audited results for the period ended 30 June, 2022 the company recorded an impressive 1147% increase in profit after tax, with double digit revenue growth across all key categories, despite the challenging macro environment.
The audited results which were released to the Nigerian Exchange Group (NGX) at the financial year-end indicated that revenue increased by 29% to N206.8bn the prior period of 2021 just as the net financing costs decreased by 94% as a result of reduction in the net interest cost, and investments of excess naira cash in fixed deposits with banks at higher rates.
The statement also noted that the business’ profit before tax increased to N23.7billion, a 310% growth compared to the same period last year while its operating profit increased by 142% in the period under review.
Higher corporate tax was reportedly driven by the increase in operating profit and reduced net finance costs.
Speaking on the performance thus far, Mr. Baker Magunda, Managing Director/CEO, Guinness Nigeria Plc said, “The performance of fiscal 2022 showed that the business delivered growth despite the challenging external environment characterised by rising inflation and heightening operating costs. Gross profit grew 59% in the year as revenues grew ahead of cost of sales. Cost of sales increased by 17%; largely due to inflationary pressures, sales volume growth, Naira devaluation impacting imported materials, air-freight cost increases and a shift towards more expensive can products.”
Strong double-digit revenue growth was delivered across all key categories driven by our strategic focus brands, Malta Guinness and Guinness, as well as strong growth in local and imported spirits and the ready-to-drink category. This growth reflects the benefits of price increases taken across all categories, leading in spirits, and followed by beer, and also the benefits of favorable brand mix, Magunda explained.
The company however revealed that its marketing spend increased by 50% last year in line with its strategy to invest and support its growth priorities and the recovery of the on-trade, following the easing of Covid-19 restrictions.
Expatiating, Magunda said, “Distribution expenses increased by 36% last year primarily due to cost inflation on freight and diesel. The net result was a 142% increase in operating profit vs. prior year.
“Going into the new fiscal year, we are conscious of the continued challenging operating environment with double-digit inflation and pressured consumer income spending, “he added.
The Chair of the Board of Guinness Nigeria Plc, Dr. Omobola Johnson assured that “The Board will continue to support Management in its efforts to build a business that aims to deliver growth consistently and sustainably for stakeholders.
“We remain confident that the strategy is comprehensive and robust, and that we are making the right investments in the company to ensure our long-term competitiveness,” she said.
Credit: thenationonlineng.net
