Guinness Nigeria Limited has reported a net loss of N12.2 billion for the quarter ending September 30, 2024 (Q1 2025), compared to a net profit of N2.6 billion recorded in the same period last year. This is a significant decrease of 568% from the previous year. .
The company’s loss was due to lower sales volumes reflecting lower gross profit margins and a foreign exchange revaluation loss of N8.4 billion during the quarter. This is a 153% year-on-year decline from the N3.3 billion exchange loss recorded in the first quarter of 2024.
According to the company’s quarterly financial report, Guinness Nigeria recorded a revenue of NOK 125.9 billion in the quarter, representing a year-on-year growth of 111 percent from revenue of NOK 59.5 billion in the first quarter of 2024. The center’s costs increased by 170% year-on-year to NOK 111.6 billion, and gross profit decreased by 21% to NOK 14.3 billion, compared to NOK 18.1 billion as of the first quarter of 2024.
Guinness’ marketing and distribution expenses in the first quarter of 2025 were N13.3 billion, an increase of 60% year-on-year from N8.3 billion in the first quarter of 2024. The company posted a pre-tax loss of N16 billion in the quarter. This is in contrast to the net profit of N3.8 billion recorded in the first quarter of 2024, which is under review.
During the quarter, Guinness’ total assets increased by 9% to N246 billion from N226.1 billion at the start of the financial year. However, despite the losses, the company moved into a consolidated equity position with N10 billion in equity, compared to N2.2 billion in shareholder funds at the beginning of the year.
A review of the company’s balance sheet shows that negative working capital increased from NOK 120.4 billion at the beginning of the financial year to NOK 140 billion at the end of the first quarter of 2025.
Later in the quarter, Diageo International’s stake in Guinness Nigeria will be sold to Tolaram Group, with Girish Sharma becoming the company’s managing director. An investigation into the company’s loans and borrowings revealed that Guinness paid off a 39.3 billion naira loan to Diageo International within the quarter. However, the company received a new letter of credit financing of N30 billion during the quarter.
