₦airaland Forum

BREAKING: Guinness Nigeria reports N20 billion profit, 6 months after Tolaram takeover.

Guinness Nigeria Plc released its second-quarter earnings, revealing a pre-tax profit of N20.1 billion for the period ending December 31, 2024.

This marks a significant reversal of fortunes from the pre-tax loss of N8.2 billion reported in the same quarter of the previous year.

It is also the first quarterly profit posted by Guinness Nigeria Plc since September 2023, when it reported a profit of N3.8 billion in its first quarter.

The profit boost comes as Tolaram Group completes its takeover of operations from Diageo, the previous parent owner of the Guinness brand.

Tolaram acquired the Guinness Nigeria franchise in June 2024, and within six months, the company recorded its first quarterly operating profit.

The second-quarter profit helped increase half-year pre-tax profits to about N4.1 billion, enabling the company to swing to its first half-year profit since December 2022.

The pre-tax profit for FY 2024 stood at N4.1 billion, indicating a substantial recovery from the loss of N4.4 billion recorded in the previous half-year.

The company reported revenue of N133.7 billion for the quarter, bringing the year-to-date figure to N259.6 billion—an 82.06% increase compared to the full year of 2023.

Key highlights (2024 vs. 2023 FY)

• Revenue: N259.6 billion, +82.06% YoY

• Cost of sales: N200.5 billion, +107.54% YoY

• Gross profit: N59 billion, +28.45% YoY

• Other income: N159 million, -93.67% YoY

• Marketing and Distribution expenses: N31.6 billion, +33.00% YoY

• Operating profit: N11.2 billion,

• Finance expenses: N71.1 billion, +197.75% YoY

• Finance Income: N63.9 billion, +1993.90% YoY

• Pre-tax profit: N4.1 billion,

• Post-tax loss: N302.7 million

Surge in revenue boosts margins

Guinness Nigeria Plc reported revenue of N259.6 billion for FY 2024, representing an impressive increase of 82.06% compared to FY 2023.

• Domestic sales accounted for a substantial 98.5% of total revenue, while export sales contributed the remaining 1.5%.

• Despite the strong revenue growth, the cost of sales surged by 107.54% year-on-year, rising from N96.6 billion in the previous year to N200.5 billion in 2024.

• However, the company recorded a gross profit increase of 28.45% year-on-year, reaching N59 billion, compared to N45.9 billion in FY 2023.

• Marketing and distribution expenses also increased significantly, rising by 33.00% to N31.6 billion from N23.7 billion in the prior year.

• With rising operational expenses, operating profit declined to N11.2 billion, down from N16.3 billion reported in the previous year.

Nairametrics analysts observed that the primary driver of Guinness Nigeria’s profitability was a surge in topline revenue, which hit a record N133.7 billion this quarter—the highest ever recorded by the company.

The revenue surge helped mitigate cost pressures, delivering an operating profit of N18.1 billion.

Guinness reported an operating loss of N6.8 billion at the end of September 2024, its first quarter of the current financial year. Operating profit margins, however, rebounded to 13.2%—the highest since March 2022, when margins stood at around 18.5%.

Meanwhile, net finance charges, which had been a major driver of losses in recent years, swung to a net gain this quarter.

• Although finance expenses more than doubled to N59.5 billion in the quarter under review, this was offset by a surge in finance income totaling N63.9 billion.

• This turnaround was primarily driven by gains from the remeasurement of foreign currency balances, which accounted for 99.51% of the finance income.

• The swing in profitability will be seen as a significant boost for the new owners of Guinness Nigeria Plc, as they work to revitalize one of Nigeria’s largest brewers.

• Tolaram Group, which acquired Guinness in June 2024, has reported its first operating profit for the company in less than six months under its management.

Nairametrics understands that Guinness Nigeria is likely to be delisted from the Nigerian Exchange as the new owners move forward with a mandatory takeover of the company’s shares from minority shareholders.

Source: https://nairametrics.com/2025/01/23/guinness-nigeria-reports-n20-billion-profit-6-months-after-tolaram-takeover/

Guinness shortage in UK must have helped.

budaatum:
Guinness shortage in UK must have helped.

So consumers travelled from UK to Nigeria just to buy stout or requested for the product shipment to UK. None of the options make any economic sense to their pockets.

Tolaram must have done some good sales and marketing strategies to improve the revenue and cut unnecessary operational and production costs to achieve this revenue against diageo, the previous parent company.

Dynamicboss:
So consumers travelled from UK to Nigeria just to buy stout or requested for the product shipment to UK. None of the options make any economic sense to their pockets.

Tolaram must have done some good sales and marketing strategies to improve the revenue and cut unnecessary operational and production costs to achieve this revenue other than diageo, the previous parent company.

Nigerian Guinness is big in UK already, and a shortage of local Guinness increased demand of all available stouts in UK including Nigerian Guinness. And I wouldn't be surprised if that increase in demand was all over Europe and even worldwide.

That's not to say Tolaram didn't do "some good sales and marketing", though I doubt their increase was mostly from Nigerian sales.

The below is for 4 bottles. Tell what that would be in Naira.

Nice one

I’m a player in the hospitality industry I know how much accrues from sale of drinks.

We dey shayo for this country no jokes

You need to be a mad drunkard like Peter Obi who knows how lucrative the business is and decide to establish a brewery. 😂😂

Why wouldn't they make profits when they took a bottle of stout from N450 to over N1,000 within the twinkle of an eye

I believe we should thank bat 🦇 for this

Poor analyst, it is a LIE from Agado

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budaatum:
Nigerian Guinness is big in UK already, and a shortage of local Guinness increased demand of all available stouts in UK including Nigerian Guinness. And I wouldn't be surprised if that increase in demand was all over Europe and even worldwide.

That's not to say Tolaram didn't do "some good sales and marketing", though I doubt their increase was mostly from Nigerian sales.

The below is for 4 bottles. Tell what that would be in Naira.

That’s a lot of money. Well that could really attribute to the profit margin.

budaatum:
Nigerian Guinness is big in UK already, and a shortage of local Guinness increased demand of all available stouts in UK including Nigerian Guinness. And I wouldn't be surprised if that increase in demand was all over Europe and even worldwide.

That's not to say Tolaram didn't do "some good sales and marketing", though I doubt their increase was mostly from Nigerian sales.

The below is for 4 bottles. Tell what that would be in Naira.

This itself is a testament to what Tolaram did. They expanded their markets beyond Nigerian shores and start exporting which ensured that they produce more and sold more.

If Tolaram had decided to sit pretty and not look outwards, they would have been stuck on just the local market.

Now due to the difference in Alchohol percentages and taste, sone of these European markets will want to keep Nigerian brewed Guiness on their shelf as their customers will ask for it.

That is market strategy

I have noticed that when companies coming up with this profits gimmick just know they want to sell shares to gain investors trust. Nigeria companies and banks

The previous owners were either lying or sabotaging the company


OR the guy above me is right.

Imagine

Abo na Detty December ?

All thieves have been sacked. Procuement and sales dept are criminals

budaatum:
Nigerian Guinness is big in UK already, and a shortage of local Guinness increased demand of all available stouts in UK including Nigerian Guinness. And I wouldn't be surprised if that increase in demand was all over Europe and even worldwide.

That's not to say Tolaram didn't do "some good sales and marketing", though I doubt their increase was mostly from Nigerian sales.

The below is for 4 bottles. Tell what that would be in Naira.

its for the whole pack

People dey drink sha..

No be say there is not positive outlook, just that turning around #8 Billion lose to #20 Billion profit in few months get as e be..

It's possible this outlook is to attract investors to buy their shares... Wise up

The major factor for the previous loss was finance cost especially of the foreign loans following the devaluation of the Naira. What the new investors did was a “re measurement of the foreign loans following” leading to significant finance income (see the report above). This is without prejudice to the other increased performance indicators - turnover etc

budaatum:
Nigerian Guinness is big in UK already, and a shortage of local Guinness increased demand of all available stouts in UK including Nigerian Guinness. And I wouldn't be surprised if that increase in demand was all over Europe and even worldwide.

That's not to say Tolaram didn't do "some good sales and marketing", though I doubt their increase was mostly from Nigerian sales.

The below is for 4 bottles. Tell what that would be in Naira.

From the article, more than 98% of sales are local sales

Some Nigerians' love for bottle is unbelievable even in the midst of hyperinflationary spiral..

Dynamicboss:
So consumers travelled from UK to Nigeria just to buy stout or requested for the product shipment to UK. None of the options make any economic sense to their pockets.

Tolaram must have done some good sales and marketing strategies to improve the revenue and cut unnecessary operational and production costs to achieve this revenue other than diageo, the previous parent company.

There were lots of expatiates with high personnel cost of more than 200m Naira annual per staffer with extra allowances for housing and families. That killed many foreign businesses in Nigeria when FX became bad. The average american worker earns a range of 100m - 300m Naira in the US. Expatiates will expect more!

Dynamicboss:
So consumers travelled from UK to Nigeria just to buy stout or requested for the product shipment to UK. None of the options make any economic sense to their pockets.

Tolaram must have done some good sales and marketing strategies to improve the revenue and cut unnecessary operational and production costs to achieve this revenue other than diageo, the previous parent company.

You are making sense. They came up with food business strategy

Dynamicboss:
So consumers travelled from UK to Nigeria just to buy stout or requested for the product shipment to UK. None of the options make any economic sense to their pockets.

Tolaram must have done some good sales and marketing strategies to improve the revenue and cut unnecessary operational and production costs to achieve this revenue other than diageo, the previous parent company.

Don’t be foolish, they also export abroad

Dynamicboss:
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That’s a lot of money. Well that could really attribute to their profit margin.

Foreign consumption was minimal in the time under review. Check the post again.

The journey of a thousand miles begins with a single comment.

fineboynl:
I have noticed that when I company coming up with this profits gimmick just know they want to sell shares to gain investors trust. Nigeria companies and banks

The Indians and Lebanese are the group that can survive in Nigeria now,they know our ways, they are even better,they can cut any corner ,bend any rule to make a kill
That's what is happening

Gotocourt:
All thieves have been sacked. Procuement and sales dept are criminals

they are all criminals, especially the employers of workers, the non staffs I know one particular one in Benin that's so arrogant and a full time criminal, Guinness shouldn't allow this.

I can see I know lots of crooks in there, better for tolaram, and I believe they will do better, but not until those thieves is been fish out like the employers ask me and I will mention to you a few.

Reports from Nigeria breweries will confirm if the markets are recovering. I pray the markets recover fast.

The former managers must be liars who were hiding things from their parent company and declaring losses .