BREAKING: Guinness Nigeria reports N20 billion profit, 6 months after Tolaram takeover

This marks a significant reversal of fortunes from the pre-tax loss of N8.2 billion reported in the same quarter of the previous year.

It is also the first quarterly profit posted by Guinness Nigeria Plc since September 2023, when it reported a profit of N3.8 billion in its first quarter.

The profit boost comes as Tolaram Group completes its takeover of operations from Diageo, the previous parent owner of the Guinness brand.

Tolaram acquired the Guinness Nigeria franchise in June 2024, and within six months, the company recorded its first quarterly operating profit.

The second-quarter profit helped increase half-year pre-tax profits to about N4.1 billion, enabling the company to swing to its first half-year profit since December 2022.

The pre-tax profit for FY 2024 stood at N4.1 billion, indicating a substantial recovery from the loss of N4.4 billion recorded in the previous half-year.

The company reported revenue of N133.7 billion for the quarter, bringing the year-to-date figure to N259.6 billion—an 82.06% increase compared to the full year of 2023.

Guinness Nigeria Plc reported revenue of N259.6 billion for FY 2024, representing an impressive increase of 82.06% compared to FY 2023.

Naijaonpoint analysts observed that the primary driver of Guinness Nigeria’s profitability was a surge in topline revenue, which hit a record N133.7 billion this quarter—the highest ever recorded by the company.

The revenue surge helped mitigate cost pressures, delivering an operating profit of N18.1 billion.

Guinness reported an operating loss of N6.8 billion at the end of September 2024, its first quarter of the current financial year. Operating profit margins, however, rebounded to 13.2%—the highest since March 2022, when margins stood at around 18.5%.

Meanwhile, net finance charges, which had been a major driver of losses in recent years, swung to a net gain this quarter.

Naijaonpoint understands that Guinness Nigeria is likely to be delisted from the Nigerian Exchange as the new owners move forward with a mandatory takeover of the company’s shares from minority shareholders.