Guinness Nigeria Plc announced one of its best results in many years with a notable increase in sales and a drop in financing costs to indicate the management’s awareness of the business environment and customers’ purchasing power in Nigeria.
The audited financial account for the entire fiscal year ended June 30, 2022, indicated an increase in revenue of almost 29%, from N160.42 billion to N206.82 billion.
According to the breakdown of revenue, Nigeria’s revenue increased by 28.9% to N204.9 billion from N158.95 billion reported in 2021, and export revenue notably increased by 33% to N1.95 billion from N1.47 billion.
The company’s strong volume and value growth during the first half of 2022 were caused by a post-covid surge in demand for its products, including Guinness, Malta, RTD, and Main Stream Spirit (MSS).
Guinness’s income increased by 23% to N69.5 billion in 2022 from the N56.58 billion recorded in 2021, while Malta’s revenue increased by 74% to N60.72 billion from N34.97 billion.
Additionally, MSS revenue increased by 34% to N32.7 billion in 2022 from N24.39 billion in 2021, while IPS revenue increased by 19% to N13.82 billion in 2022 from N11.57 billion. According to the loss and profit numbers, the cost of sales increased by 17% to N134.16 billion in 2022 from N114.71 billion in 2021, while gross profit increased by 59% to N72.66 billion in 2022 from N45.71 billion reported in 2021.
The company claimed it made bold and deliberate pricing hikes, maintained stakeholder engagement, and continued investment in community impact to lessen the effects of the difficult climate.
In order to report N2.74 billion in non-core business income in 2022 compared to N1.03 billion in 2021, the company used to gain on disposal of property, plant, and equipment that increased by 502.9 percent to N1.69 billion in 2022 from N280.9 million in 2021 and by 73 percent to N665.09 million in 2022 from N385.48 million in 2021.
Thus, the total operating costs increased by 40.3% to N51.06 billion in 2022 from N36.38 billion in 2021.
The rise in overall operating costs was primarily caused by an increase in marketing and distribution costs of 43% to N37.34 billion in 2022 and an increase in administrative costs of 33% to N10.32 billion in 2022.
The management loss on the remeasurement of foreign currency balances decreased to N1.16 billion in 2022 from N2.53 billion reported in 2021, while finance income increased by 259% to N1.9 billion in 2022 from N529.16 million in 2021, and finance costs decreased by 54% to N2.13 billion in 2022 from N4.63 billion.
Guinness Nigeria ended the 2022 fiscal year with a profit before tax of N23.67 billion, up 301% from N5.77 billion in 2021. The international company’s earnings after tax for 2022 are projected to be N15.65 billion, with tax expenses increasing by around 77.7% to N8.02 billion.