Guinness Nigeria plc, a subsidiary of Diageo plc, has announced its audited results for the period ended 30 June 2022, revealing an 1147 percent increase in profit after tax from N1.255 billion in 2021, including Double-digit revenue growth. All major categories in spite of the challenging macro environment.
Audited results issued to the Nigerian Exchange Group (NGX) at the end of the fiscal year indicated that revenue grew 29% to N206.8billion, compared to the prior period of 2021 to N160.416bn.
Despite inflationary pressures and a decrease in domestic wallets, Malta sales and revenues were up on the back of the RTD brands.
At the analysts’ conference, the brewer said the Malta brand contributed a 74% increase in revenue from N34.968 billion to N60.722 billion in 2021, while ready-to-drink (RTD) spirit-based beverages accounted for N17. Followed with 56% of revenue. 627 billion from N19.719 billion in 2021.
Net financing cost came down by 94% as a result of reduction in net interest cost and investment of additional naira cash in fixed deposits with banks at higher rates.
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The statement also noted that the business’s profit before tax increased to N23.7 billion, an increase of 310% compared to the same period last year; and operating profit increased by 142% in the reporting period. The higher corporate tax was driven by an increase in operating profit and a reduction in net finance costs.
what is the company saying
- Speaking on the announcement, Mr Baker Magunda, Managing Director/CEO, Guinness Nigeria Plc said: “The FY 2022 performance showed that the business delivered growth despite a challenging external environment characterized by rising inflation and rising operating costs. Gross profit increased 59% in the year as revenue from cost of sales increased. cost of sales increased by 17%; Mainly due to inflationary pressures, increased sales volume, naira devaluation affecting imported materials, increased air-freight costs and a shift towards more expensive can products.
- “There was strong growth in the local and imported spirits and ready-to-drink category, along with strong double-digit revenue growth across all key categories driven by our strategic focus brands, Malta Guinness and Guinness. This increase reflects the benefits of price increases across categories, led by spirits, followed by beer as well as the benefits of a favorable brand mix. ,
- The company, however, disclosed that following the easing of COVID-19 restrictions, its marketing spend grew 50% over last year in line with its growth priorities and its strategy to invest in and support the recovery of on-trade.
- “Distribution expenditure increased by 36% over the previous year, mainly due to cost inflation on freight and diesel. The net result was an increase of 142% in operating profit over the previous year”, Magunda said.
- “Going into the new fiscal year, we are alert to a continuing challenging operating environment with double-digit inflation and pressure consumer income spending. However, we will continue to focus on our strategy – leveraging technology to optimize our route-to-consumer, innovate at scale to satisfy our consumers, and improve cost control. We are confident of the execution and flexibility of our Total Beverage Alcohol strategy as a key driver of sustainable growth in the market.” He added.
- Dr. Omobola Johnson, Chairman of the Board of Guinness Nigeria Plc, assured that “The Board will continue to support management in its efforts to build a business that aims to provide sustainable and sustainable growth for stakeholders.”
- “We believe the strategy is comprehensive and strong, and we are making the right investments in the company to ensure its long-term competitiveness” he said.
- Revenue up 29% from N160.416 billion to N206.822 billion
- Marketing and distribution spending grew by 43.32% from N37.35 billion in 2022 to N26.06 billion in 2021
- Net finance charges decreased -94% to N225.899 million from N4.101 billion