Guinness Nigeria had an after-tax loss of N61.7 billion for the nine-month period ending March 31, 2024, compared to a profit of N5.9 billion in the same period in 2023, despite the price hike.
The brewer’s revenue increased by 28% to N220.3 billion during the same period last year, from N172.5 billion.
“Guinness’ performance in the third quarter of 2024 was disappointing. Despite strong top-line results, the corporation posted a loss-before-tax of N56 billion for the third quarter of 24. The firm’s beer and mainstream spirit businesses had average product prices rise by 43% YTD during the period, which was primarily responsible for the topline gain,” according to a statement from FBNQuest analysts.
According to the experts, unrealized foreign exchange losses of almost N32.1 billion were the main cause of the increase in net finance costs. “Despite a decrease of 25.7 percent in the company’s cash balance year-to-date, net-debt decreased by 2.8 percent year-to-date N29 billion due to a 38.2 percent decrease in borrowings.”
While the current socioeconomic environment would continue to create problems, Guinness Nigeria Plc’s managing director and CEO, Adebayo Alli, stated in a note that “I am confident in the resilience of our business and our ability to navigate the volatility.” To satisfy our customers’ changing needs and preferences, we will continue to put a strong emphasis on innovation and enhancing operational excellence.
Additionally, the business leveraged its digital platforms to increase its emphasis on trade support and consumer involvement. Notably, ready-to-serve drinks, international premium spirits, and non-alcoholic malt all saw significant revenue growth, demonstrating the efficacy of these tactics, the speaker noted.
Guinness Nigeria raised the prices of all of its products earlier in May, citing growing manufacturing and operating expenses as the reason.
The new range of prices will go into effect today, according to a notification issued by Guinness Nigeria and signed by Olusanya Adesanya, the company’s Ag. Commercial Director, and headlined “Price Increase by Guinness Nigeria Plc – Selected Brands.”
Guinness Nigeria stated, “This is to inform you that we plan to take a price increase on selected SKUs in our Beer and MSS category following the prevailing economic realities which have significantly impacted on the costs of our production materials and cost of doing business.”
Further information will be released later. “This new price structure will be effective from Wednesday, March 13, 2024, (Go-Live date),” the statement read.
Guinness went on to advise its patrons to “please take note of the following terms pertaining to the price increase. Subject to stock availability, the maximum purchase volume before price increases at the previous pricing is capped at one week’s depletion.”
The items that are impacted are the following: Gordon’s Pink Berry, Gordon’s Sunset Orange, Gordon’s Moringa Citrus, Smirnoff X1 Smooth and Choco, Captain Morgan, Orijin Herbal Gin, Dubic Malt, Smirnoff Ice, Orijin, and Orijin Bitters.
Guinness, which used to sell for roughly N500, is now selling for between N800 and N900, an 80% increase. Big Stout now retails for N1000, a 43 percent increase from N700.
Trophy’s price went from N500 to N700, a 40% rise, while Guilder’s price went from N600 to N1000, a 67% increase.
In 1962, Diageo Plc of the United Kingdom established Guinness Nigeria, a Nigerian subsidiary. The company was established by constructing a brewery in Ikeja. The brewery was the first Guinness establishment outside of Britain and Ireland. Over time, several breweries have opened, including the Benin City brewery in 1973 and the Ogba brewery in 1963.
