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Despite the increasingly inflationary environment, Guinness Nigeria Plc reported significant revenue growth for the second quarter (Q2) of its 2024 fiscal year, ending December 31, 2024.
The company in its Q2 2025 unaudited results, revealed that it recorded a 61% year-on-year (y/y) increase in revenue, reaching approximately N133.72 billion, compared to NGN 83.06 billion in the same period the previous year.
It further revealed that its pre-tax profit stood at N20.14 billion in Q2 2025, marking a turnaround from the pre-tax loss of N8.25 billion recorded in Q2 2024. After accounting for a tax expense of N8.28 billion during the quarter, profit after tax (PAT) stood at N11.86 billion (vs loss after tax of N7.83 billion in Q2 2024).
The return to profitability during the quarter was largely driven by a 61.0% y/y growth in revenue and a net finance income of N2.02 billion (vs net finance cost of N16.77 billion in Q2 2024).
Analysing its result, Daily Sun found out that its revenue growth was driven by increased sales in premium product categories, including Non-Alcoholic Malt, Ready-to-Serve beverages, and International Premium Spirits; an expanded retail distribution network; and strategic price adjustments.
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On a quarter-on-quarter basis, revenue rose by 6.2%, supported by the festive season-induced demand. Guinness Nigeria reported a standalone earnings per share (EPS) of N5.42 (vs loss per share of N3.57 in Q2 2024), bringing H1 2025 loss per share to N0.14 (H1 2024 loss per share: N2.39).
The brewer’s gross profit margin steadied at 33.5% in the quarter (H1 2025: -949bps y/y to 22.7%), as the 61.0% y/y increase in cost of sales matched the growth in revenue. Reacting, analysts at Cordros Research attributed the increase in costs to the highly inflationary environment (December 2024 Food CPI: 39.84%) and naira depreciation.
However, EBITDA margin improved by 240bps y/y to 15.7% in Q2 2025 (H1 2025: -852bps y/y to 6.5%) despite a 31.0% y/y increase in operating expenses.
Further down, the company reported a reversal in its net finance position, reporting a net finance income of N2.02 billion in Q2 2025 (vs net finance cost of N16.77 billion in Q2 2024). This positive outcome was driven by a 23.7x surge in finance income to N61.53 billion, largely attributable to FX-related gains of N61.47 billion, which outpaced finance costs of N59.51 billion (+208.9% y/y). However, for H1 2025, net finance costs declined by 65.7% y/y to N7.15 billion.
“We like Guinness’ recovery in Q2 2025, highlighting the strong revenue growth and improvement in profitability margins. Looking ahead, we expect this momentum to be sustained, supported by improving operational efficiencies as the synergies from Tolaram’s acquisition gradually materialise. However, we remain cautious about persistent cost pressures, which could pose challenges to profitability growth”, Cordros Research said.
