Guinness also said its gross profit rose by 16 per cent, and
a five per cent increase in the cost of sales despite the challenging business
environment driven by inflation and the impact of naira devaluation on imported
materials in the period under review.
In a statement, the Managing Director and Chief Executive
Officer of the company, Mr John Musunga, said, “In the half year ended 31st
December 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, Ready-to-Serve, and Spirits. Malta Guinness
was flat on the previous year due to the impact of increased pricing in
response to the higher inflationary pressure on packaging costs.”
He added that, “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 an
increase in the price of diesel, other haulage inputs, and asset replacement
cost. Despite all the above, the company delivered N12.6bn 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.
He, noted that the finance income increased by 121 per cent
on account of higher yields from short-term cash investments.
The Chair of the Board of Guinness Nigeria Plc, Dr Omobola
Johnson, stated, “The board is confident that our strategy is sound, and will
in the long term continue to drive value to all stakeholders.”
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