Amidst high inflation, currency devaluation, fuel subsidy removal and food insecurity currently prevailing in the Nigerian business landscape, Guinness Nigeria recorded a successful market presence and customer base expansion in the second half of the last financial year.
This is as the company announced 31 per cent year-on-year revenue growth, citing increased optimisation of its category mix, innovative offerings, and targeted price increases as contributory factors to offsetting rising market costs.
In a recent statement, Guinness Nigeria Plc noted that its revenue growth in the second half of the financial year ended June 30, 2024, also witnessed a 41 per cent acceleration, up from 20 per cent in the first half.
According to the statement, the company disclosed that its “Non-alcoholic malt, ready-to-serve beverages and international premium categories demonstrated resilience, recording notable growth compared to the previous year.”
It also added that despite its accomplishments, Guinness Nigeria was not relenting, as it still faces challenges due to Nigeria’s dwindling economy.
The statement added that the company was increasingly utilising digital platforms, among other strategies, such as activations and captivating brand visibility, to heighten its efforts to intensify trade and consumer engagement.
“Despite these accomplishments, the company faced the increased cost of sales, which rose by 37 per cent due to inflation-driven hikes in raw material prices, unprecedented utility cost increases, and currency devaluation. Nonetheless, operating profit rose by nine per cent propelled by strong revenue performance and intensified productivity gains across the organisation,” the statement read in part.
Similarly, the Managing Director of Guinness Nigeria, Adebayo Alli, in a statement, praised the effort of his team while acknowledging that the company’s performance in the second half of the last financial year was significant, indicating the resilience and a positive drive towards official cum business duties by staff.
Ali, who spoke confidently about the company’s performance, said he was optimistic the feat would be sustained into the new financial year.
He said, “We are extremely proud of our team’s ability to deliver solid financial performance amid significant macroeconomic headwinds. Our strategic focus on category mix optimisation, innovative product offerings and targeted price adjustments have been vital in navigating these challenges and driving growth.
“Looking ahead, we are committed to our mission of transforming Guinness Nigeria with a strong focus on winning differently as we move into FY25. We will continue to leverage digital innovation, deepen our consumer engagement, and invest in our people and brands to ensure sustained growth and value creation for our stakeholders.”
The MD added that despite the country’s unfavourable business conditions, Guinness Nigeria’s feat was significant and could positively impact the forex market while complementing prior losses.
“The continued currency devaluation posed significant challenges, with the spot rate moving from N759.03/$1 at the start of the year to N1,540/$1 at the end of the financial year. This resulted in a substantial unrealised forex loss and a loss before tax of N73.68b. Despite these challenges, the board remains confident in the company’s well-crafted strategy,” he noted.
For his part, the firm’s chairman, Dr Omobola Johnson, said the company was committed to continuously evaluating its strategy against the evolving business landscape to ensure that it delivers returns to shareholders and creates long-term value for all stakeholders.
Dr Johnson added that the company’s performance this year demonstrates its resilience and adaptability to economic challenges.
