Guinness returns to profitability after two-year losses

Guinness Nigeria Plc has returned to profitability, bringing respite to the breweries in Nigeria, after two years of FX-induced losses dealt a blow to the company’s earnings.

The brewer, known for household brands like Guinness Stout and Malta Guinness, recorded a profit after tax N16.2 billion from a loss of N54.7 billion after tax in the same period of 2024, supported by robust revenues, higher operational efficiency, and strategic asset growth, as disclosed in the company’s full-year financial statement for the year ended June 30, 2025.

This rebound was driven by a 55.8 percent rise in revenue from domestic and export sales of the company’s products, amounting to N496 billion from N299.4 billion.

The beer maker’s foreign exchange losses also reduced to N9.56 billion in the fiscal period ended June 2025 from N41.1 billion in the same period of last year.

Guinness’ marketing and distribution expenses during the fiscal year ended were N69.4 billion, representing a 40 percent year-on-year growth from N49.6 billion. The company posted a pre-tax profit of N27.9 billion during the period under review, in contrast with the N73.6 billion net loss posted in June 2024.

During the quarter, Guinness’ total assets appreciated by 21.8 percent to N273 billion, from N226.1 billion at the start of the financial year.

The company invested in fixed and intangible assets, with property, plant, and equipment rising to N115 billion from N101.3 billion, and intangible assets jumping over twelvefold to N6.6 billion, signaling digital or intellectual property expansion.

On the equity side, the company’s retained losses shrank from N46.4 billion to N30.2 billion, showing a N16.2 billion turnaround in net earnings. Shareholders’ equity rebounded to N18.4 billion, a nearly tenfold increase from N2.2 billion the prior year, a strong signal of restored investor value.

Liabilities, however, remained heavy at N255.1 billion, but this was largely made up of trade payables and loans used to finance inventory and operations. Notably, short-term borrowings rose to N58.7 billion (from N40.1 billion), while trade payables ticked up marginally to N182.2 billion.

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Despite macroeconomic pressures, Guinness Nigeria generated N38.4 billion in net operating cash flows, a substantial, though lower, figure compared to N80.1 billion in the prior year. The positive cash from operations

This was driven by N27.9 billion in pre-tax profit, depreciation and amortization of N11.9 billion, and working capital improvements, especially a significant N83.9 billion rise in trade payables.

Investing activities recorded a net outflow of N25.6 billion, primarily from increased capital expenditure (N26.2 billion), suggesting ongoing investments in infrastructure and production capacity.

Financing activities reflected a net outflow of N57.3 billion, as the company juggled rising interest expenses (N15.3 billion), currency-related foreign exchange losses (N55.8 billion), and loan repayments (N61.2 billion), offset by new borrowings of N75.1 billion.

Consequently, Guinness ended the year with a net cash and cash equivalents deficit of N683 million, a reversal from the N45.8 billion balance a year earlier. However, this does not pose an immediate liquidity concern due to healthy working capital levels and access to bank overdrafts and credit facilities.

In an earlier report, the company disclosed that it will be changing its accounting year from 1st July to 30th June to an accounting date of J of January 1st to December 31st.

“The rationale for the change is to align with the standard calendar and budgeting year of 1st January to 31st December. The change will also facilitate simpler reporting timelines going forward,” it said.