Guinness Plc records N16.03bn pre-tax loss in Q1 2024 ending September

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.

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 costs 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 percent 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.