₦airaland Forum

Guinness Nigeria Plc recorded a pre-tax loss of N16.03 billion in the period between July and September 2024.

This is according to the company’s unaudited result for the first quarter of 2024/2025 where revenues more than doubled from N59.53 billion to N125.88 billion.

During the period under review, the company saw a reversal of fortunes from recording an operating profit in its first quarter of 2024 to posting an operating loss during the period under review.

Furthermore, in the period under review, the company saw significant increases in finance cost, marketing and distribution expenses as well as admin expenses while other income dropped.

Key Highlights of the report  
Revenue- N125.88 billion, +111%
Cost of sales- N111.62 billion, +170%
Gross Profit- N14.25 billion, (-21.4%)
Marketing and Distribution expenses- N13.3 billion, +60%
Administrative expenses- N7.88 billion, +57.6%
Operating loss – N6.86 billion, (-187%)
Finance Income- N2.44 billion, +120%
Finance cost- N11.60 billion, +151%
Net finance cost- N9.16 billion, +126%
Pre-tax loss- N16.03 billion, (-520%)
After-tax loss- N12.16 billion, (-569%)
Basic Earnings Per Share (EPS)- (-N555), -566%

Commentary:  
In the full year of 2024, Guinness Nigeria Plc reported a pre-tax loss of N73.6 billion for the financial year ending June 30, 2024. The company’s financial statement revealed that it recorded a foreign exchange revaluation loss of N112.3 billion, marking a 129% increase from the N49.1 billion loss reported in the 2023 financial year.

The company’s loss in the period under review was exacerbated by an increase in the cost of sales, finance cost as well as admin expenses. In the period the increase in cost of sales in Q1, 2025 was higher than the company’s increase in revenue hence a decline in gross profit from N18.13 billion to the current figure.

Also, finance cost doubled during the period, contributing significantly to the current loss. In the financial year 2024, the company reportedly had a $22.5 million loan to Diageo Plc.

The current losses are coming a few months after Tolaram took over the reins of the company. In June 2024, Tolaram acquired 58.02% ownership of Guinness Nigeria Plc from Diageo- a move that signalled the exit of Diageo from Nigeria.

At the time of the announcement, Guinness had a market capitalization of N110.7 billion, with its shares trading at N50.5 each, suggesting that the deal could surpass N64 billion.

Kukutente23:
See wahala
How can a company generate an increase in revenue of over 100% and still declare loss year- on- year?

This Tinubulation nor be here o

When you consider that Guinness is actually one of the most viable stocks outside of the banking sector, you begin to imagine the fate of other companies especially in manufacturing and FCMG with high recurring inputs.

The forex loss even increased by 129% from 2023 which means the currency devaluation is the main source of concern for the manufacturers.

The next biggest issue is cost of sales which is cost of manufacturing goods. This implies that companies are having high input cost year-on-year which can be directly attributed to the fuel subsidy removal and electricity tariff hikes.

DeepSight:
The destruction is so self evident and one nairalanda1 has the nerve to say in the same sentence that he supports these policies and also wants us to industralize. How he and his ilk dont know that these policies are killing industry, is just benumbing.

Execute policies that render everyone poorer and everything more expensive and yet stand back and expect that there will be a robust market for finished products. With what buying power? The one you murdered?

And rather than tackle the point the clown will start making jokes.
Honestly.
Sickening.

nairalanda1:
😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂🤣😂🤣🤣🤣🤣🤣🤣🤣🤣🤣😂😂😂😂😂😂😂😂😂😂🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤩🤣🤩🤩🤣🤩🤩🤩🤩🤣🤣😆😆😆😆😆😁😁😁😁😁😁😆😆😆😆😆😅😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂🤣🤣🤣🤣



The poor poor laddie.

DeepSight:
Pathetic. Shameful. Repulsive. Disgusting. Cowardly.

DeepSight:
The destruction is so self evident and one nairalanda1 has the nerve to say in the same sentence that he supports these policies and also wants us to industralize. How he and his ilk dont know that these policies are killing industry, is just benumbing.

Execute policies that render everyone poorer and everything more expensive and yet stand back and expect that there will be a robust market for finished products. With what buying power? The one you murdered?

And rather than tackle the point the clown will start making jokes.
Honestly.
Sickening.

Willie2015:
NBS figures(2022) says 63 per cent of persons living in Nigeria ...
(133 million people) are multidimensional poor.....
Now imagine the effect of BAT policies on these folks...
That Nairalanda1 reasonin is something else...