Guinness Nigeria Plc Posts N16.03 Billion Loss Amid Rising Costs
Guinness Nigeria Plc reported a significant pre-tax loss of N16.03 billion for Q1 2024/2025, covering July to September 2024. Despite a 111% jump in revenue, reaching N125.88 billion compared to N59.53 billion in the same period last year, the company faced steep operational and financial challenges.
Key Financial Challenges
The quarterly report showed that increased costs overshadowed revenue gains:
- Cost of Sales rose 170%, totaling N111.62 billion, severely impacting Gross Profit, which fell by 21% to N14.25 billion.
- Marketing and Distribution Expenses surged by 60% to N13.3 billion, while Administrative Expenses climbed by 57.6% to N7.88 billion.
- Finance Costs nearly doubled to N11.60 billion, contributing to a Net Finance Cost of N9.16 billion.
Operational Losses and Currency Pressures
An operating loss of N6.86 billion marked a significant downturn from a profit position in the previous quarter. This loss follows a challenging year in which the company recorded a massive foreign exchange revaluation loss of N112.3 billion for FY 2024. A loan of $22.5 million to Diageo Plc, combined with the rising dollar rate, has intensified financial pressures.
A New Chapter Under Tolaram’s Ownership
Tolaram’s recent acquisition of a 58.02% stake in Guinness Nigeria Plc from Diageo, valued at over N64 billion, marks a new direction for the company. However, Guinness’s path to profitability under Tolaram’s ownership will be closely watched as the company grapples with Nigeria’s tough economic environment.