Guinness Plc’s Malt division contributes N39.29bn to total revenue

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Guinness Nigeria Plc recently released its HY 2021 results ended December 2021, revealing impressive top and bottom-line growth, with Revenue standing at N109 billion, as the beer company’s Malts Division contributed N39.28 billion to Half-year 2021 revenue.

This was disclosed at the Investors Presentation following the release of its half-year results, which revealed that the Malts & RTDs divisions impressively grew by 149% and 80% y-o-y, respectively.

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The Malts & RTDs division include Malta Guinness, Orijin and Smirnoff Ice Malt.

According to the financial highlight, sales from the Malts division assisted growth in overall revenue by 36%, representing N39.28 billion, during the period.

The financial highlight revealed that the spirits division has recorded continuous growth in two years, from 2019 to 2021. In 2019, the division’s contribution to revenue was 18%, it contributed 22% growth to revenue in 2020. In 2021, the division contributed 24% to revenue, reflecting a 33.33% increase in the Spirits division contribution to overall revenue in two years.

However, Beer division, the second-largest contributor to overall revenue declined by 17.95% in two years and contributed 32% to the 2021 HY revenue, representing N34.92 billion.

In addition, Malts division, the largest contributor to the overall revenue, grew in its contribution by 2.86% in two years, while Ready to Drink products contributed 8% to revenue during the period, representing N8.73 billion.

The increase in the contribution of the Spirits Division is in line with the company’s strategic focus and can be attributed to the increase in the consumption of the brand of alcohol.

The revenue reported during the period was supported by increments in the prices of the products initiated by the company across all categories to mitigate inflation and maintain category margins. In addition, the growth in revenue is attributable to resilient consumer demands as well as continued investment in the brands, according to the financial highlights.

Guinness Plc has reported a 50.83% growth in revenue from N72.35 billion in HY 2020 to N109.12 billion in the current period. The breweries company reported a profit after tax of N8.82 billion from a loss of N317.42 million in the corresponding period of 2020.

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