Executive Summary
Guinness Nigeria Plc delivered a remarkable recovery for the 15 months ended 30 September 2025, swinging from a ₦54.77 billion loss in the prior period to a ₦26.28 billion profit. The turnaround was driven by robust revenue growth, improved cost management, and significant gains in finance income. Revenue nearly doubled to ₦594.68 billion (15M 2025 vs ₦299.49 billion in 12M 2024), supported by price adjustments, improved brand mix, and volume recovery in premium and malt segments. Despite inflationary pressures, operating efficiency improved, lifting operating profit to ₦63.89 billion (+151% YoY). The Group’s balance sheet strengthened significantly, with total equity rising to ₦28.44 billion (+1,217% YoY), reflecting profit retention and improved asset valuation, while total assets increased 9% to ₦245.98 billion. Guinness Nigeria remains focused on sustaining revenue growth, controlling costs, and managing financial risks, including FX volatility and raw material inflation.
Financial Highlights – Statement of Profit or Loss
₦’000 15M 2025 12M 2024 YoY Change / Comment
Revenue 594,675,144 299,489,774 +99%
Cost of Sales (409,945,582) (208,031,003) +97%
Gross Profit 184,729,562 91,458,771 +102%
Other Income 430,244 3,177,450 –86%
Administrative Expenses (36,479,833) (19,538,535) +87%
Marketing & Distribution Expenses (84,788,789) (49,690,205) +71%
Operating Profit 63,891,184 25,407,481 +151%
Finance Income 89,587,383 21,764,454 +311%
Finance Cost (109,682,300) (120,851,804) –9%
Profit/(Loss) Before Tax 43,796,267 (73,679,869) Turnaround
Income Tax Expense (17,513,350) 18,913,093 —
Profit After Tax 26,282,917 (54,766,776) Recovery
EPS (Kobo) 1,200 (2,500) —
Earnings and Operational Performance
• Guinness Nigeria delivered a strong earnings recovery, reversing prior-year losses through disciplined cost management and robust revenue growth.
• Gross margin improved slightly to 31.1% (vs 30.5% in 12M 2024), reflecting controlled production and pricing strategies.
• Operating margin expanded to 10.7% (vs 8.5% prior), demonstrating operational efficiency despite inflationary cost pressures.
• Finance income rose 311% to ₦89.59 billion, driven by gains on cash holdings, which partially offset finance costs and supported net profitability.
Profitability Analysis
• Operating Profit Margin: 10.7% (vs 8.5% in 12M 2024)
• Net Profit Margin: 4.4% (vs –18.3% in 12M 2024)
• Return on Equity (ROE): 92.4% (vs –2,532% in 12M 2024), reflecting a dramatic turnaround in shareholder returns.
The results demonstrate improved cost efficiency, strong brand execution, and financial discipline, enabling Guinness Nigeria to restore profitability.
Balance Sheet Overview
₦’000 Sep 2025 Jun 2024 Movement
Total Assets 245,982,516 226,130,077 +9%
Non-Current Assets 130,974,170 122,574,521 +7%
Current Assets 115,008,345 103,555,556 +11%
Cash & Cash Equivalents 3,687,359 45,804,346 –92%
Inventories 63,690,496 41,857,479 +52%
Trade & Other Receivables 41,915,141 13,225,730 +217%
Total Liabilities 217,538,133 223,968,611 –3%
Total Equity 28,444,383 2,161,466 +1,217%
Loans & Borrowings (Current) 57,963,244 40,132,900 +44%
Interpretation:
• Equity position strengthened significantly, reflecting retained profits and value appreciation.
• Inventories and receivables grew due to higher production and sales volumes.
• Cash dropped sharply (–92%), indicating tight liquidity despite earnings recovery.
• Leverage improved; debt-to-equity fell to 7.6x from 103.6x, signaling more sustainable capital structure.
Key Ratios
Ratio 15-Months 2025 12-Months 2024
Gross Margin 31.1% 30.5%
Operating Margin 10.7% 8.5%
Net Profit Margin 4.4% (18.3%)
ROE 92.4% (2,532%)
Current Ratio 0.53x 0.47x
Debt/Equity 7.6x 103.6x
Strategic Developments & Operational Highlights
• Revenue Growth: Driven by price adjustments, improved brand mix, and volume recovery in premium and malt segments.
• Operational Efficiency: Marketing and administrative costs managed effectively, lifting operating margin.
• Finance Gains: Increased finance income offset borrowing costs, improving net finance position.
• Balance Sheet Management: Focus on strengthening equity base; short-term liquidity remains a priority due to low cash levels.
• Turnaround Focus: Continued emphasis on volume growth, FX risk management, and raw material cost control to sustain profitability.
Strengths
• Successful turnaround from prior-year losses to profitable operations.
• Strong revenue growth and improved margins.
• Significant equity base expansion supports shareholder value.
• Debt-to-equity substantially reduced, improving solvency.
Weaknesses
• Cash and liquidity position remain tight.
• High reliance on finance income gains to offset interest costs.
• Short-term borrowings remain elevated, posing refinancing risk.
• Profitability sensitive to raw material costs, FX volatility, and market volumes.
Outlook
The Group is well positioned for sustained profitability if revenue growth continues and finance costs are managed. Key priorities include:
• Sustaining sales volumes in premium and malt segments.
• Controlling FX and inflationary pressures on raw materials.
• Managing short-term liquidity and optimizing working capital.
• Maintaining disciplined cost management to protect margins.
Analyst View
“Guinness Nigeria Plc has achieved a remarkable turnaround, reversing prior losses through revenue growth, disciplined operations, and strong finance management. Tight liquidity remains a challenge, but improved leverage, margin gains, and strengthened equity provide a solid foundation for sustainable profitability.”
Conclusion
Guinness Nigeria Plc’s 15-month results to September 2025 reflect successful operational recovery and financial discipline, with revenue growth, improved margins, and strong finance income driving a return to profit. While liquidity constraints require attention, the strengthened balance sheet and robust equity position provide a solid base for continued growth and value creation.
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