Nigeria: Guinnes Nigeria sees 11% revenue growth in Q1 ended September 30

Guinness Nigeria, a subsidiary of Diageo Plc, has posted a revenue growth of 11 per cent to N52.8 billion for its first quarter (Q1) period ended September 30, 2022, the Leadership reported on November 3.

The unaudited result released to the Nigerian Exchange Group (NGX) showed a 20 per cent increase in gross profit in the period under review, with double-digit revenue growth across all key categories. The increase has been achieved despite the impact of the challenging business environment with double-digit inflation and a heightened operating cost.

The managing director/CEO at Guinness Nigeria, Mr Baker Magunda said the result is the outcome of a dedicated workforce, adding that, “the performance of Guinness Nigeria in Q1, 2023 showed that the business delivered growth despite the challenging external environment. We have continued to deliver on our promise of growth, through strategic innovation, great partnerships, and futuristic thinking despite the challenges faced.”

He added that, “revenue grew by 11 per cent to N52.8 billion, driven by resilient consumer demand and improved outlet coverage, as well as rollover benefits of price increases taken across all categories in 2021.

“Double-digit revenue growth was delivered across all key categories driven by our strategic focus brands, Malta Guinness and Guinness, as well as strong growth in locally manufactured spirits and the ready-to-serve category.

“The result further showed that gross profit was up 20 per cent as revenue grew ahead of the cost of sales. Cost of sales increased by seven per cent; largely due to inflationary pressures and the naira devaluation impacting imported materials.

“We have continued to invest behind our focus brands and categories which has given rise to an increase in marketing investment, up 48%, to support our growth priorities and spend ahead of peak season to secure performance during the festive period in Q2.”

Projecting into the fourth quarter, Magunda revealed that, “irrespective of the continued challenging operating environment with high-level inflation and pressured consumer income spending, the business will continue to focus on strategic and innovative ways in making our business seamless thereby leading to the satisfaction of our consumers.”

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