Guinness Nigeria reports +31% revenue growth in FY 2024 despite economic challenges

In the twelve months ended 30th June 2024, Guinness Nigeria delivered a remarkable +31% year-on-year revenue growth. This strong performance was even more pronounced in the second half of the year, with revenue growth accelerating to 41%, up from 20% in the first half.

This achievement is particularly notable given the challenging macroeconomic environment, characterized by declining consumer disposable income due to all-time high inflation, currency devaluation, fuel subsidy removal, and food insecurity.

The revenue growth was driven by an optimized category mix, innovative offerings, and targeted price increases to offset rising costs. Non-Alcoholic Malt, Ready-to-Serve beverages, and International Premium categories demonstrated resilience, recording notable growth compared to the previous year. The company also intensified its trade and consumer engagement efforts through digital platforms, activations, and captivating brand visibility.

Despite these accomplishments, the company faced increased cost of sales, which rose by 37% due to inflation-driven hikes in raw material prices, unprecedented utility cost increases, and currency devaluation. Nonetheless, operating profit rose by 9%, propelled by strong revenue performance and intensified productivity gains across the organization.

Managing Director of Guinness Nigeria, Adebayo Alli, expressed confidence in the company’s trajectory: “We are extremely proud of our team’s ability to deliver such strong financial performance amidst significant macroeconomic headwinds.

Our strategic focus on category mix optimization, innovative product offerings, and targeted price adjustments has been key to navigating these challenges and driving growth. Looking ahead, we are committed to our mission of transforming Guinness Nigeria with a strong focus on winning differently as we move into FY25.

We will continue to leverage digital innovation, deepen our consumer engagement, and invest in our people and brands to ensure sustained growth and value creation for our stakeholders.”

The continued currency devaluation posed significant challenges, with the spot rate moving from N759.03/$1 at the start of the year to N1,540/$1 at the end of the financial year. This resulted in a substantial unrealized forex loss and a loss before tax of N73.68billion. Despite these challenges, the Board remains confident in the company’s well-crafted strategy.

The Chairman of the Board of Directors, Guinness Nigeria, Plc, Dr. Omobola Johnson stated: “We remain committed to continuously evaluating our strategy against the evolving business landscape to ensure we deliver returns to our shareholders and create long-term value for all stakeholders. Our performance this year demonstrates the resilience and adaptability of our business in the face of economic challenges.”