Nigeria: Guinness Nigeria suffers huge net loss in first quarter of its FY 2024/25

Guinness Nigeria Plc earnings performance was broken by a huge loss recorded in the first three months of the financial year 2024/2025, its unaudited financial statement showed, MarketForces Africa reported on October 24.

Details from the company’s unaudited financial report showed a net loss of N12.17 billion as against profit of N2.60 billion in the comparable period in 2023/2024. The report showed that higher production costs and FX losses damaged the company’s financials significantly in the first quarter of the year.

In the period, Guinness Nigeria grew revenue by 111.4% year on year to N125.89 billion from N59.536 billion in the comparable period in 2023/2024. A further review showed that domestic and export sales increased by 111.7% and 95.2%, respectively, in the first three months of financial year 2025.

The brewery earnings scorecard showed the costs of goods sold accelerated faster year on year than revenue growth, causing margin to decline. Guinness Nigeria’s costs of goods sold rose by about 170% year on year to settle at N111.629 billion from N41.399 billion 12 months earlier.

Due to sharp increase in raw materials and energy costs Guinness Nigeria’s gross margin dropped to 11.3% within 12 months from 30.5% in financial year 2023/2024.

Other income also fell significantly while operating expenses grew sharply. Details from the report showed that operating expenses rose by 81.7% year on year. Additionally, finance costs jumped by 151.2%, driven by a N7.37 billion FX loss resulting from the re-measurement of foreign currency balances.

The company’s recorded N16.034 billion as net loss, reversing from N3.818 billion profit posted in the comparable period in FY 2023/2024.

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