Guinness Nigeria bounces back with N20 billion quarterly profit
Guinness Nigeria Plc has announced a pre-tax profit of N20.1 billion in its second-quarter earnings for the period ending December 31, 2024.
This milestone marks a dramatic turnaround from the N8.2 billion pre-tax loss recorded in the corresponding period of 2023 and represents the company’s first quarterly profit since September 2023, when it posted a modest profit of N3.8 billion.
The company’s resurgence coincides with the recent acquisition of its operations by Tolaram Group, which finalized the takeover from Diageo in June 2024.
Within six months of assuming control, Tolaram has guided the company to its first operating profit under its stewardship, underscoring the impact of its strategic management approach.
For the half-year period, Guinness Nigeria posted a pre-tax profit of N4.1 billion, recovering from the N4.4 billion loss reported during the same period in 2023.
This indication marks the first half-year profit for the company since December 2022, further signaling a return to financial stability.
The company’s revenue for the second quarter stood at N133.7 billion, contributing to a year-to-date total of N259.6 billion, an 82.06% increase compared to the full-year revenue for 2023.
This impressive growth was driven primarily by domestic sales, which accounted for 98.5% of the total revenue, with export sales making up the remaining 1.5%.
Despite the revenue surge, Guinness Nigeria faced escalating costs, with the cost of sales jumping by 107.54% year-on-year, rising from N96.6 billion in 2023 to N200.5 billion in 2024.
Nevertheless, the company achieved a gross profit of N59 billion, a 28.45% increase from N45.9 billion in the prior year.
Operating expenses also trended upward, with marketing and distribution costs rising by 33% to N31.6 billion compared to N23.7 billion in 2023.
This, coupled with higher finance expenses, which increased by 197.75% to N71.1 billion, placed significant pressure on margins.
While operating profit declined to N11.2 billion from the N16.3 billion reported in the previous year, the company’s improved revenue stream mitigated the impact of these expenses.
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