New Telegraph

December 8, 2023

Guinness Nigeria: Sustaining dominance via innovations

Guinness Nigeria Plc traded at 67.50 on Friday February 17, 2023 The current share price of Guinness Nigeria (GUINNESS) is NGN 67.50. GUINNESS closed its last trading day (Friday, February 17, 2023) at N67.50 per share on the Nigerian Stock Exchange (NGX). Guinness began the year with a share price of N69.30, ranking it 139th on the NGX in terms of year-to-date performance. Guinness Nigeria is the 69th most traded stock on the Nigerian Stock Exchange over the past three months (Nov 18, 2022 – Feb 17, 2023). It has traded a total volume of 24 million shares—in 3,596 deals—valued at NGN 1.58 billion over the period, with an average of 380,265 traded shares per session. A volume high of 5.06 million was achieved on December 8th, and a low of 4,520 on December 23rd, for the same period.


Guinness Nigeria Plc announced its unaudited results for its first half year period ended 31st December 2022. The results, which were released to the Nigerian Exchange Group (NGX), showed that revenue increased nine per cent versus the prior comparable period despite the challenging business environment.

The results revealed that gross profit grew 16 per cent, as revenues grew by nine per cent ahead of the five per cent increase in cost of sales, driven by inflation and the impact of naira devaluation on imported materials in the half- year under review. Speaking on the announcement, Mr. John Musunga, Managing Director/CEO, Guinness Nigeria plc, said: “In the half year ended December 31, 2022, Guinness Nigeria delivered results that reflected the continued regulatory, competitive and inflationary challenges in the operating environment in Nigeria. “The period was characterised by challenges such as escalating inflation, dwindling consumer disposable income and a worsening foreign exchange situation. Despite these challenges, the business recorded good progress against our strategic focus brands.

“Despite lapping a strong quarter in 2021, revenue grew by nine per cent, benefiting from price and mix optimisation, as well as reflecting resilient consumer demand and improved outlet coverage as we continue to optimise our route to consumer. Revenue grew across most categories, driven by our strategic focus brands, Guinness, Readyto- Serve and Spirits. Malta Guinness was flat on previous year due to the impact of increased pricing in response to the higher inflationary pressure on packaging costs. “Marketing expenses increased seven per cent, as we increased marketing investment to support our strategic growth priorities and target market share improvement. Distribution expenses increased 28 per cent, driven by increase in the price of diesel, other haulage inputs and asset replacement cost.

Despite all the above, the company delivered N12.6 billion operating profit.” Musunga noted that the continued devaluation of the naira resulted in a 758 per cent increase in net financing costs, due to the revaluation of the hard currency debt. However, finance income increased by 121 per cent on account of higher yields from short-term cash investments. Lower corporate tax is driven by the reduction in pre-tax profits.

“Looking forward, we will continue to drive our strategy which has deliberate focus on key categories, exploding Guinness growth, growing spirits faster, continuing to innovate to meet consumer needs, and driving productivity. Whilst we are conscious of the continued challenging operating environment with double digit inflation, and pressured consumer spending, we are positive about the execution of our strategy for the remainder of the 2023 financial year.

We remain confident of the resilience of our Total Beverage Alcohol portfolio strategy as a key driver of sustainable growth in the market,”.he added. On her part, Dr Omobola Johnson, Chair of the Board of Guinness Nigeria Plc, said: “The Board is confident that our strategy is sound, and will in the long term continue to drive value to all stakeholders. “The Board continues to support the Management in its efforts to build a business that aims to consistently deliver growth for stakeholders.” Guinness Nigeria Plc is a beer-brewing company that packages and markets beverages such as Guinness Foreign Extra Stout, Guinness Extra Smooth, Malta Guinness, Gordon’s Spark, and Harp Lager beer. Other brands include Smirnoff Ice, Armstrong Dark Ale, Satzenbrau Pilsner, Top Malt, Harp Lime, Dubic Extra Lager, and most recently, Malta Guinness Low Sugar. Nigeria is the world’s second-largest market for Guinness brands of beverages. Guinness Nigeria became the first Guinness brewery outside of the British Isles when the first bottle of Guinness Foreign Extra Stout was brewed in November 1963, three years after Nigeria’s independence.

Two years later, the company listed on the Nigerian Stock Exchange. Guinness Nigeria is currently the only total beverage company in Nigeria, meaning the only company with a wide portfolio of brands catering to alcohol and non-alcohol drinkers, with spirits, lager and beers, and non-alcoholic drinks. Guinness Nigeria is listed on the Nigerian Stock Exchange (NGX) since January 2, 1965. Guinness is traded on the NGX under the ticker symbol “GUINNESS.” The International Securities Identification Number (ISIN) of NGX:GUINNESS is NGGUINNESS07. Guinness Nigeria is currently the 22nd most valuable stock on the NGX with a market capitalisation of NGN 148 billion, which makes about 0.504 per cent of the Nigerian Stock Exchange equity market.

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