Home Business Guinness Nigeria records N125bn revenue for 2017

Guinness Nigeria records N125bn revenue for 2017

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Non-Executive Director, Prof Joe Irukwu; Managing Director, Mr. Peter Ndegwa; Non-Executive Director, Ambassador Sunday Dogonyaro; and Non-Executive Director, Ms Ngozi Edozien; all of Guinness Nigeria Plc, during the signing ceremony of the company’s N40bn rights issue in Lagos

Guinness Nigeria Plc today announced a 23% increase in revenue for the full year ended 30 June 2017. The results, which were released to the Nigerian Stock Exchange (NSE), also showed a gross profit of N48.3bn which is 16% higher versus the previous year and an operating profit of N10.2bn representing an increase of 131% year on year.

Peter Ndegwa, Managing Director/CEO, Guinness Nigeria said the company’s results were driven by a relentless focus on executing our strategy and keeping costs down.

“Despite the challenging economic conditions, we have remained focused on executing our company’s total beverage strategy which gained further traction with strong growth in our international premium spirits portfolio following our first full year of distribution,” he said.

In December 2015, Guinness Nigeria Plc became the first total beverage alcohol company in Nigeria when it acquired the rights to distribute International Premium Spirits (IPS) including Johnnie Walker Scotch whisky and Bailey’s liqueur in Nigeria. This was quickly followed in January 2016 by the acquisition of the rights to distribute McDowell’s, a United Spirits Limited (USL) whisky brand.

Ndegwa also stated that, “Our gross profit of N48.3bn is as a result of volume growth, pricing benefit and a favourable sales mix as we continued to invest in our expanded brand portfolio during the year. Part of that investment includes the N4.7billion spirits line for locally manufactured spirits which we commissioned in Benin. These strategic acquisitions and expansions have filled the gaps in the spirits brand base allowing us to compete across all categories of the alcoholic beverage market in Nigeria. We remain committed to executing our productivity agenda with a strong focus on cost reduction, distribution and operational efficiencies.”

Mr Babatunde Savage, Chairman, Guinness Nigeria Plc, said that the company remains committed to the Nigerian market. “It is pleasing to see that the decisions we have taken in recent years have helped to position the company for sustained business growth. We are grateful for the strong support that our shareholders have afforded us over the years. With our continuing focus on driving performance and our determination to positively impact the lives of Nigerians. We look forward to continuing to give Nigerians a reason to celebrate life every day and everywhere.”

Guinness Nigeria Plc was established in 1950 and listed on The Nigerian Stock Exchange in 1965. With a shareholder base of over 75,000 shareholders, it is also one of the foremost quoted companies in Nigeria. The company built its first brewery in Ikeja in 1962, and currently has facilities in Ogba, Benin City and Aba. Included in its portfolio are such acclaimed brands – Guinness Foreign Extra Stout, Guinness Extra Smooth, Malta Guinness, Harp Lager beer, Smirnoff Ice, Satzenbrau Pilsner, Dubic Lager Beer, Smirnoff Intense Chocolate Vodka, Royal Challenge, McDowell’s and Malta Guinness Herbs Lite. Guinness Nigeria is a subsidiary of Diageo Plc, a global leader in beverage alcohol with an outstanding collection of brands across spirits, beer and wine categories.

The company, according to its spokesperson, Olayinka Edmond, continues to be a champion for responsible drinking and community development. For the past 12 years, Guinness Nigeria has run its ‘Ember Months’ campaign in partnership with the Federal Road Safety Corps (FRSC) and the Ministry of Transportation, aimed at educating consumers on the dangers of drinking and driving.

Also, via its flagship ‘Water of Life’ scheme, the company has delivered 35 water facilities across 24 states in Nigeria.

These facilities have helped provide clean drinking water for over 1.5 million Nigerians. Guinness Nigeria also established the Lagos University Teaching Hospital Guinness Eye Centre in 1993, and Guinness Eye Centre Onitsha in 1984. Since the establishment of these eye centres, Guinness Nigeria has continued to support these institutions through the donation of eye equipment.