THUR JULY 23 2026-theGBJournal|Guinness Nigeria Plc delivered a strong second-quarter earnings performance as robust consumer demand, price increases and sharply lower finance costs boosted profitability despite a challenging operating environment.
The brewer reported a 57.3 per cent year-on-year rise in earnings per share to N6.81 for the three months ended June 2026, lifting first-half EPS to N11.55, while its board rewarded shareholders with an interim dividend of N7.00 per share.
Revenue grew by 19.9 per cent, operating margins widened and finance costs fell by more than 60 per cent, underscoring a marked improvement in the company’s earnings quality.
By geography, domestic sales, which accounted for 98.4% of revenue, grew by 20.0% y/y in Q2-26 (H1-26: +11.7% y/y), while export sales (1.6% of total revenue) rose by 12.7% y/y (H1-26: +23.4% y/y).
On a quarter-on-quarter basis, revenue rose by 15.9%.
Gross margin expanded by 15bps y/y to 37.9% in Q2-26 (H1-26: -94bps y/y to 36.8%), as topline growth outpaced cost of sales growth (+19.6% y/y).
The H1-26 contraction reflects the weaker Q1-26 outturn, when cost of sales growth (+7.4% y/y) outpaced revenue growth (+3.7% y/y), compressing gross margin by 221bps y/y to 35.4%.
Meanwhile, gross margin improved by 254bps q/q to 37.9%, supported by stronger revenue growth (+15.9% q/q) relative to cost of sales (+11.3% q/q), reflecting easing in cost pressures.
Similarly, EBIT and EBITDA margins expanded by 180bps y/y and 205bps y/y to 17.1% and 20.1%, respectively, in Q2-26 (H1-26: +40bps y/y and +89bps y/y to 15.7% and 18.8%, respectively), despite an 11.6% y/y increase in operating expenses (H1-26: +5.9% y/y).
OPEX growth was driven by higher marketing and distribution costs (+14.7% y/y | 72.8% of OPEX) and administrative expenses (+4.0% y/y | 27.2% of OPEX).
Furthermore, net finance costs declined sharply by 62.1% y/y in Q2-26, underpinned by a 78.0% y/y reduction in finance costs on the back of lower interest on loans and borrowings (-65.7% y/y) as the group continues to deleverage, which more than offset a 96.6% y/y decline in finance income to N0.13 billion.
In H1-26, net finance costs declined by 74.2% y/y, supported by a 64.9% y/y reduction in finance costs, reflecting a 59.3% y/y contraction in interest on loans and borrowings, alongside a 967.2% y/y increase in finance income to N1.18 billion.
Finally, profit before tax (PBT) increased by 66.7% y/y in Q2-26 (H1-26: +60.9% y/y), while profit after tax (PAT) grew by 57.3% y/y in Q2-26 (H1-26: +53.3% y/y).
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