Guinness Nigeria posted a pre-tax loss of N16.03 billion from July to September 2024.
This is according to the company’s unaudited financial results for the first quarter of 2024/2025, where revenue more than doubled from N59.53 billion to N125.88 billion.
During the period, the company had experienced a reversal of fortunes, having posted an operating profit in the first quarter of 2024, but ended up posting an operating loss in the current period.
Additionally, during the period, finance costs, marketing and distribution expenses, and administrative expenses increased significantly while other revenues decreased.
Key highlights of the report Revenue – 125.88 billion Naira, +111% Cost of goods sold – 111.62 billion Naira, +170% Gross profit – 14.25 billion Naira, (-21.4%) Marketing and distribution expenses – 13.3 billion Naira, +60% Administrative Expenses – 7.88 billion Naira, +57.6% Operating Loss – 6.86 Billion Naira, (-187%) Finance Income – 2.44 Billion Naira, +120% Finance Expenses – 11.6 Billion Naira, +151% Net Financial Cost – 9.16 billion Naira, +126% Loss before tax – 16.03 billion Naira, (-520%) Loss after tax – 12.16 billion Naira, (-569%) per share Basic profit (EPS) – ( -N555), -566%Comment: For the full year 2024, Guinness Nigeria Limited reported a pre-tax loss of N73.6 billion for the financial year ended June 30, 2024. The company’s financial statements revealed that it had recorded a foreign exchange revaluation loss of N112.3. This was a 129% increase from the N49.1 billion loss reported in the 2023 financial year.
The company’s losses for the period were further exacerbated by increases in cost of goods sold, financial costs, and administrative expenses. During this period, gross profit decreased from N18.13 billion to the current figure as the increase in cost of goods sold exceeded the company’s revenue growth in Q1 2025.
Additionally, financial costs doubled during the period, contributing significantly to the loss for the period. The company reportedly provided a $22.5 million loan to Diageo for the 2024 financial year.
The current losses come several months after Tolaram took over the reins of the company. In June 2024, Tolalum acquired 58.02% ownership of Guinness Nigeria Limited from Diageo. This was a move that signaled Diageo’s exit from Nigeria.
At the time of publication, Guinness’ market capitalization was N110.7 billion and the stock was trading at N50.5 per share, suggesting the deal could be worth more than N64 billion.
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