Despite the hikes in prices of it’s products, Guinness Nigeria has reported a loss of N61.7 billion for the nine-month period ended March 31, 2024, compared to a profit of N5.9 billion in the same period of 2023 despite an increase in price.
The brewer recorded 28 per cent growth in revenue to N220.3 billion compared to N172.5 billion in the same period last year.
The Managing Director/CEO of Guinness Nigeria Plc, Adebayo Alli, who expressed this said that, while the current macroeconomic environment will continue to present challenges, “I am confident in the resilience of our business and our ability to navigate the volatility.”
“Our focus remains steadfast on innovation and stepping up operational excellence to meet our consumers’ evolving tastes and preferences.
“Furthermore, the company intensified its focus on consumer engagement and trade support, leveraging its digital platforms.
Notably, categories such as non-alcoholic malt, ready-to-serve beverages, and international premium spirits witnessed substantial revenue growth, underscoring the effectiveness of these strategies,” he said.
Recall that earlier in May, Guinness Nigeria implemented a price increase on all its products, which was ascribed to the rising cost of production and cost of doing business.
It said in a notice titled, “Price Increase by Guinness Nigeria Plc – Selected Brands,” which was signed by its Ag. commercial director, Olusanya Adesanya, that the new range of prices would take effect from today.
“Following the prevailing economic realities which have impacted significantly on the costs of our production materials and cost of doing business, this is to inform you that we plan to take a price increase on selected SKUs in our Beer and MSS category,” Guinness Nigeria said.
“This new price structure will be effective from Wednesday, March 13, 2024, (Go-Live date), and further details will be communicated subsequently,” it said.
Guinness further told its customers to, “please note the following conditions regarding the price increase. Maximum purchase volume before price increase at old pricing is capped at one-week depletion subject to stock availability.
Affected products are Guinness Stout, Guinness FES, Guinness Smooth, Malta Guinness, Dubic Malt, Smirnoff Ice, Orijin, Orijin Bitters, Gordon’s Pink Berry, Gordon’s Sunset Orange, Gordon’s Moringa Citrus, Smirnoff X1 Smooth and Choco, Captain Morgan and Orijin Herbal Gin.
Guinness price of about N500 now sells for N800 and N900, indicating 80 per cent increase. Big stout retails N1000 from N700, which is a 43 per cent increase.
Trophy’s price increased by 40 per cent to N700 from N500 while Guilder retails N1000 from N600, indicating 67 per cent increase.
Guinness Nigeria, a Nigerian-based subsidiary of Diageo Plc of the United Kingdom, was incorporated in 1962 with the building of a brewery in Ikeja. The brewery was the first Guinness operation outside Ireland and Great Britain. Other breweries have been opened over time: Ogba brewery in 1963 and Benin City brewery.
