Guinness Nigeria Plc’s revenue for the first half of fiscal 2022 grew 9 percent, the company said in a statement on Saturday.

Guinness also said its gross profit rose 16 per cent and a five per cent increase in cost of sales despite the challenging business environment driven by inflation and the impact of the naira devaluation on imported materials in the low period. revision.

In a statement, the company’s managing director and chief executive officer, John Musunga, said: “In the six months ending December 31, 2022, Guinness Nigeria delivered results that reflected the ongoing regulatory, competitive and inflationary challenges in the operating environment. in nigeria.

“The period was characterized by challenges such as rising inflation, declining consumer disposable income, and a worsening foreign exchange situation. Despite these challenges, the business made good progress against our strategically focused brands.

“Despite delivering a strong quarter in 2021, revenue grew nine percent, benefiting from pricing and mix optimization, as well as reflecting resilient consumer demand and improved POS coverage as we continue to optimize. our route to the consumer.

“Revenue grew across most categories, driven by our strategically focused brands, Guinness, Ready-to-Serve and Spirits. Malta Guinness was flat from the prior year due to the impact of rising prices in response to increased inflationary pressure on packaging costs.”

He added that “Marketing spend increased 7 percent as we increased marketing spend to support our strategic growth priorities and target market share enhancement.

“Distribution expenses increased 28 percent, driven by an increase in the price of diesel, other transportation inputs, and the cost of asset replacement. Despite all of the above, the company obtained an operating profit of N12,600 million”.

Musunga noted that the continued devaluation of the naira resulted in a 758 percent increase in net financial costs, due to the revaluation of hard currency debt.

He noted that financial income increased 121 percent due to higher returns on short-term cash investments.

Guinness Nigeria Plc Chairman of the Board of Directors, Dr. Omobola Johnson, stated: “The board is confident that our strategy is sound and, over the long term, will continue to deliver value for all stakeholders.”