Guinness Nigeria, a subsidiary of Diageo Plc, said its profit after tax rose by 731 per cent to N15.28bn in the first quarter of 2022 financial period.
The beverage company said in a statement that its revenue rose by 39 per cent to N159.44bn as of the end of the first quarter of the current year.
Commenting, the Managing Director/Chief Executive Officer, Guinness Nigeria Plc, Mr Baker Magunda, said, “In the first nine months of fiscal 22, Guinness Nigeria continued to grow on the back of the strong recovery in the first half of fiscal 22.
“The business has delivered growth in the face of the challenging operating environment characterised by rising inflation and forex challenges in the three months ended 31 March 2022.
“Revenue grew by 39 per cent to N159.4bn benefitting mainly from price increases across all brands, as well as from favourable brand mix and resilient consumer demand.”
He added, “We have delivered revenue growth 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 has further showed that our strategy is sound, and we are unwavering in our commitment to ensuring our long-term competitiveness in Nigeria.”
The statement said the gross profit grew 76 per cent in the period as revenues grew ahead of cost of sales.
Cost of sales increased by 24 per cent, largely due to inflationary pressure, sales volume growth, forex devaluation impacting imported materials, air freight cost increase and a shift towards more expensive can products.
The company also noted that its marketing expenses increased 68 per cent versus last year as it increased its marketing investments.
Magunda said, “We increased marketing investment to support our strategic growth priorities and the recovery of the on-trade.
“Distribution expenses also increased 36 per cent driven by higher volumes, freight and diesel inflation and extended journey time for road transportation. All of our efforts delivered an operating profit growth of 200 per cent to N22.9bn.”
The Board Chair, Guinness Nigeria Plc, Dr. Omobola Johnson, said, “The board remains confident that our strategy is sound and will continue to support the management to build a business that will consistently deliver sustainable growth for all our stakeholders.”