Despite the operating environment challenges, the
Company recorded improved performance in
major performance indicators with its revenue growing by 58 per cent to N47.46
billion for the first quarter period ended , 30 September 2021, Q1’21 from
N30,024 billion in the corresponding period, Q1’20.
This increase in revenue was as a result of the resilient
consumer demand and improved outlet coverage and proactive efforts of the
management to curtail costs.
The unaudited results which were released to the Nigerian
Exchange Group (NGX) revealed a 117 per cent increase in gross profit in the
period, with double digit revenue growth across all key categories despite the
impact of continued COVID-19 related restrictions and ongoing economic
challenges.
Other performance indicators showed that Profit After Tax,
PAT grew by 580 per cent to N 4.043 billion from a loss of N841 million in
Q1’20 while the pre tax stood at N5.946 billion from a loss of N317 million in
Q1’21. The net financing costs decreased by 38 per cent while distribution expenses increased 36 per
cent driven by higher volumes and inflation in the period under review.
Commenting on the performance of the results, Mr. Baker
Magunda, Managing Director/CEO, Guinness Nigeria said: “In the three months
ended 30 September 2021, Guinness Nigeria delivered exceptional results despite
the challenging external environment characterized by continued restrictions
related to COVID 19, high inflation and heightening operating costs.”
“Revenue grew by 58 per cent to N47.4 billion, driven by
resilient consumer demand and improved outlet coverage, as well as benefitting
from headline price increases in key brands. Revenue grew across all key
categories driven by our strategic focus brands, Malta Guinness and Guinness,
as well as double-digit growth in local and imported spirits and the
ready-to-drink category.”
“We are aware of the challenges in the operating
environment, and regardless, our focus remains on delivering value to our
stakeholders. This is why we continue to invest behind our strategic focus
brands and categories, and to support the recovery of the on-trade, as seen in
the 50% Marketing spend increase. Cost of sales also increased by 40%, largely
due to sales volume growth, inflationary pressure, a shift towards more
expensive can products and forex devaluation impacting imported materials” he
added.
The company also revealed that despite the devaluation of
the naira, its net financing costs decreased by 38 per cent as a result of
reduction in the net interest cost on the back of better cash generation; and
operating profit grew 1010 per cent to N6.5 billion.
“As a business, we will continue to remain agile in doing
business in Nigeria for the consistent delivery of growth for all stakeholders
.We remain conscious of the continued challenging operating environment with
double-digit inflation and pressured consumer income spending. However, we
continue to focus on our strategy – optimising our route to consumer,
innovating at scale to satisfy our consumers and improving cost control – these
elements we can control.
We remain confident in our People, and in the execution and
resilience of our Total Beverage Alcohol strategy as a key driver of
sustainable growth in the market.” Managing Director/CEO, Guinness Nigeria Plc,
Baker Magunda said.
Meanwhile, the Chair person of the Board of Guinness
Nigeria, Dr. Omobola Johnson had assured shareholders during its last Annual
General Meeting, AGM that “the Board
will continue to support Management in its efforts to sustain global best
practices aimed at consistently delivering business growth for stakeholders.”
“We remain confident that the strategy is comprehensive and
robust, and that we are making the right investments in the company to ensure
our long-term competitiveness” she said.
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