Guinness Nigeria, a leading beverage alcohol company in Nigeria, reported mixed results for the half-year ended 31 December 2023. While the company achieved a 20% increase in revenue to N142.59 billion, it also posted a net loss of N4.4 billion due to a significant foreign exchange loss..
The unaudited result released to the Nigerian Exchange Group (NGX) showed a 31 per cent increase in operating profit in the period under review and the operating margin expanded by 90 bps, fueled by 9 per cent increase in gross profit, gains from other income (Export Expansion Grant), and reduced operating costs, even as brand investment increased by 15 per cent.
While revenue growth, driven by strategic pricing and a focus on premium brands, offered a glimmer of hope, the substantial loss cast a long shadow over the performance.
The currency woes inflicted a N18 billion unrealized foreign exchange loss, erasing gains and plunging the company’s bottom line into the red.
The Managing Director/CEO of Guinness Nigeria Plc, Mr Adebayo Alli, recognizing the headwinds said, “While this was a commendable performance in the face of very challenging macro environment, regrettably, the persistent devaluation of the Naira led to a substantial (N18bn) unrealised foreign exchange loss, which caused a 161 per cent decline in profit before tax, closing the half-year at a loss of N4.4 billion.”
He, however, added that the “management of the Company remains committed to taking all steps and proactive actions necessary to continue delivering value to its stakeholders.”
The Board Chair, Dr. Omobola Johnson, echoed Alli’s sentiment, praising the company’s resilience but highlighting the need for continued vigilance.
“Despite the significant macroeconomic challenges faced by the Company, the Board remains confident in its strategy and will continue to support management in implementing it for sustainable value creation for all stakeholders.”