Guinness Nigeria Plc, a subsidiary of Diageo Plc, has released its half year results to the Nigerian Exchange Group (NGX), showing a significant profit after tax of N8.820 billion, a huge 2879 per cent improvement from corresponding period in the 2020- 2021 financial year.
The brewer’s profit before tax equally grew by 903 per cent to N12.971 billion from N1,293 billion the previous year.
Guinness sustained its growth with 266 per cent increase in its operating profit as stated in the unaudited results for the first half year period ended December 31, 2021.
According to a statement from the firm, Guinness Nigeria Plc Managing Director/ CEO, Baker Magunda, affirmed that the earnings resulted from headline price increases in key brands; a reflection of the resilient consumer demand and improved outlet coverage.
The company’s revenue grew by 51 per cent to N109.1 billion in half-year ended December 2021, as it continued to optimise its product distribution system for all segments.
The foremost brewer also reported that the impacts on the revenue during the period was engendered by a number of factors including inflationary pressure, forex devaluation impacting imported materials and air freight cost increase.
“Revenue growth across all key categories is driven by the company’s strategic focus brands; Malta Guinness and Guinness, as well as double-digit growth in local and imported spirits and the ready-to-drink category,” Magunda said.
It is pertinent to note that the company continued to ride on the strong efforts of recovery in Q1 of financial year 2021-2022, despite a challenging external environment due to continued restrictions related to COVID 19, high inflation and heightening operating costs.
The company financing costs was also positively impacted as net financing costs decreased by 74 per cent as a result of reduction in the net interest cost arising from improved cash generation, despite the devaluation of the naira.
On her part, Dr. Omobola Johnson, the Board Chair of Guinness Nigeria Plc, assured: “The board remains confident that our strategy is sound and will in the long term continue to drive value to all stakeholders.