Guinness Nigeria, a subsidiary of Diageo, has registered exemplary bottom-line performance in the full year ended June 2022, driven by increase in revenue and decline in finance cost.
According to the brewer, it attained 29 per cent growth in revenue to N206.82 billion (US$482.87m) from N160.42 billion (US$374.54m) in 2021, driven by rise in volume sales across most of its product categories.
Revenue from its Guinness beer rose by 23 per cent to N69.5billion (US$162m) from N56.58billion (US$132m) reported in 2021, while revenue from Malta rose by 74 per cent to N60.72billion (US$141.7m) in 2022 from N34.97billion (US$81.65m) in 2021.
In addition, revenue from Main Stream Spirit rose by 34 per cent to N32.7billion (US$76m) in 2022 from N24.39billion (US$56.94m) in 2021, while International Premium Spirits (IPS) gained 19 per cent to N13.82billion (US$32.27m) in 2022 from N11.57billion (US$27.01m) in 2021.
The breakdown of revenue showed a 28.9 per cent increase in Nigeria’s revenue to N204.87billion from N158.95billion (US$371.1m) reported in 2021, while revenue from Export rose significantly by 33 per cent to N1.95billion (US$4.55m) from N1.47billion (US$3.43m) in 2021.
During the period under review, cost of sales rose by 17 per cent to N134.16billion (US$313m) in 2022 from N114.71 billion (US$26.7m) in 2021 to positioned gross profit to N72.66billion (US$169m) in 2022, representing an increase of 59per cent from N45.71billion (US$106.72m) reported in 2021.
To mitigate the impact of the challenging environment, the company said it took bold & deliberate price increases, sustained stakeholder engagement and continued investment in community impact.
The company leveraged on gain on disposal of property, plant and equipment that rose by 502.9per cent to N1.69billion (US$3.95m) in 2022 and the sale of by-products that rose by 73per cent to N665.09million (US$1.53m) in 2022 to report N2.74billion (US$6.4m) non-core business income in 2022 from N1.03billion (US$2.40m) reported in 2021.
Total operating expenses, thus, rose 40.3 per cent to N51.06billion (US$119.2m) in 2022 from N36.38billion (US$84.94m) in 2021.
The increase in total operating expenses was driven by 43 per cent hike in marketing and distribution expenses to N37.34billion (US$87.18m) in 2022 and 33 per cent increase in administrative expenses to N13.71billion (US$31.9m).
As finance income rose by 259per cent to N1.9billion (US$4.4m), finance cost dropped by 54 per cent to N2.13billion (US$4.97m) in 2022, as the management loss on remeasurement of foreign currency balances dropped to N1.16billion (US$2.71m) in 2022.
In all, Guinness Nigeria closed 2022 financial year with N23.67billion (US$55.26m) profit before tax, an increase of 310 per cent from N5.77billion (US$13.47m) in 2021.
With about 77.7per cent increase in tax expenses to N8.02billion (US$18.72m), profit after tax hits N15.65billion (US$36.54m) in 2022, the highest declared by the multinational company.
During the period under review, the company celebrated its 72nd anniversary with the opening of a new state-of-the-art headquarters edifice in Ogba, Lagos.
The ultra-modern open plan workspace features bright, colourful and multi-functional spaces and embraces leading sustainability practices as well as the company’s commitment to inclusion and diversity.
It also has a fully equipped gymnasium, disability access through-out; Zoom-enabled meeting spaces and collaborative hotspots; sound-proof phone booths; floor-to-ceiling windows, daylight harvesting to reduce energy required to light offices; high-efficiency cooling systems to conserve energy; a stunning state-of-the-art bar, and many more.
The country’s foremost Total Beverage Company also completed the acquisition of 25 acres of commercial property in the Ogba industrial area of Lagos, reaffirming its overarching strategy and expansion plans in the country.