Guinness Nigeria Plc has demonstrated a strong financial recovery in the nine months leading up to March 31, 2025, reporting a significant profit after tax of N6.72 billion. This positive performance stands in stark contrast to the substantial loss of N61.65 billion recorded during the same period in the previous year, signifying a remarkable turnaround in the company’s financial health. This resurgence is largely attributed to a substantial 71.5% surge in revenue, reaching N377.94 billion compared to N220.30 billion in the prior year. This revenue growth was primarily fueled by a robust increase in domestic sales, which constituted the bulk of the total revenue at N373.88 billion, supplemented by export sales of N4.06 billion. This indicates a strong focus on and success within the Nigerian market.
The cost of sales, while experiencing a significant increase of 79.8% to N274.41 billion from N152.64 billion, was outpaced by the growth in revenue. This resulted in a healthy gross profit of N103.53 billion, reflecting a 53% increase from the N67.66 billion achieved in the previous year. Though the company faced increased operating expenses, including a rise in administrative expenses to N23.95 billion from N13.24 billion and a jump in marketing and distribution expenses to N50.52 billion from N35.27 billion, the robust revenue growth provided sufficient cushion to absorb these increased costs and still deliver a positive bottom line. The higher marketing and distribution expenses likely contributed to the robust revenue growth, indicating successful strategic investments in these areas.
Furthermore, Guinness Nigeria incurred substantial finance expenses amounting to N95.13 billion, primarily attributed to foreign exchange losses on the remeasurement of foreign currency balances. However, this was effectively offset by a significant finance income of N80.26 billion, a dramatic increase from N7.54 billion in the previous year. This income stemmed from gains realized through foreign currency revaluations, demonstrating the company’s ability to navigate the complexities of the foreign exchange market and capitalize on favorable currency fluctuations. The net effect of these financial dynamics contributed to the overall profitability of the company.
The positive impact of the revenue growth and effective financial management is evident in the pre-tax profit figure, which stood at N14.39 billion, a stark contrast to the pre-tax loss of N60.46 billion reported in the corresponding period of 2024. After accounting for a tax charge of N7.66 billion, Guinness Nigeria achieved a net profit of N6.72 billion. This translates to earnings per share of 307 Kobo, a significant improvement from the loss per share of 2,815 Kobo recorded in the preceding year. This performance signals a restored financial stability and promising growth trajectory for the company.
The company’s total assets grew to N285.63 billion as of March 31, 2025, compared to N226.13 billion as of June 2024. This increase primarily reflects a strengthening of the company’s inventory and receivables positions, indicating a healthy operational cycle and efficient management of working capital. The substantial asset growth further underscores the financial health and positive momentum of the company. This expansion in assets likely reflects investments in production capacity and improved distribution networks, further supporting the company’s substantial revenue growth.
Guinness Nigeria’s management highlighted the fact that over 98% of its revenue was generated domestically, reaffirming the company’s strong foothold in the Nigerian market and its successful strategy focused on local consumers. This reliance on domestic sales demonstrates the brand’s deep penetration and resonance within the Nigerian market. This strong domestic performance reinforces the company’s strategy and its ability to leverage local market opportunities. Earlier reports also indicated strong performance for the company, with an 82.2% revenue increase reported for the six months ending December 31, 2024. This consistent growth trajectory points towards a sustained period of success for Guinness Nigeria. The combined effect of these positive financial indicators paints a picture of a company on a clear path to recovery and growth.
