FRI JAN 24 2025-theGBJournal| Guinness Nigeria Plc (GUINNESS) published its Q2-25 unaudited results Thursday afternoon, reporting a standalone EPS of N5.42 (vs loss per share of N3.57 in Q2-24), bringing H1-25 loss per share to N0.14 (H1-24 loss per share: N2.39).
The return to profitability during the quarter was largely driven by a 61.0% y/y growth in revenue and a net finance income of N2.02 billion (vs net finance cost of N16.77 billion in Q2-24)
Guinness Nigeria Plc grew its revenue by 61.0% y/y in Q2-25 (H1-25: +82.1% y/y), driven by increased sales in premium product categories, including Non-Alcoholic Malt, Ready-to-Serve beverages, and International Premium Spirits; an expanded retail distribution network; and strategic price adjustments.
On a quarter-on-quarter basis, revenue rose by 6.2%, supported by the festive season-induced demand.
Gross profit margin steadied at 33.5% in the quarter (H1-25: -949bps y/y to 22.7%), as the 61.0% y/y increase in cost of sales matched the growth in revenue.
The result is attributed to the increase in costs to the highly inflationary environment (December 2024 Food CPI: 39.84%) and naira depreciation.
However, EBITDA margin improved by 240bps y/y to 15.7% in Q2-25 (H1-25: -852bps y/y to 6.5%) despite a 31.0% y/y increase in operating expenses.
Further down, the company reported a reversal in its net finance position, reporting a net finance income of N2.02 billion in Q2-25 (vs net finance cost of NGN16.77 billion in Q2-24).
This positive outcome was driven by a 23.7x surge in finance income to NGN61.53 billion, largely attributable to FX-related gains of N61.47 billion, which outpaced finance costs of N59.51 billion (+208.9% y/y). However, for H1-25, net finance costs declined by 65.7% y/y to N7.15 billion.
Overall, the brewer reported a pre-tax profit of N20.14 billion in Q2-25, marking a turnaround from the pre-tax loss of N8.25 billion recorded in Q2-24.
After accounting for a tax expense of N8.28 billion during the quarter, profit after tax stood at N11.86 billion (vs loss after tax of N7.83 billion in Q2-24).
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