Guinness Nigeria Plc has reported a loss of N54.77 billion for the financial year ending June 30, 2024.
This represents a 201% increase compared to the previous year’s loss of N18.17 billion.
The company’s net finance costs surged by 117.79% to N99.09 billion, up from N45.50 billion in 2023.
This sharp rise in financial expenses contributed to the loss before income tax, which increased to N73.68 billion from N22.14 billion last year.
Despite these challenges, Guinness Nigeria’s revenue rose by 31% to N299.49 billion, compared to N229.44 billion in the previous fiscal year.
The profit from operating activities also saw a modest increase of 9% to N25.41 billion from N23.36 billion.
The Board of Directors did not recommend any dividend for the year, a stark contrast to the N15.64 billion dividend paid in 2023.
Guinness Nigeria, with a market capitalization of N139.09 billion, remains a significant player in the Consumer Goods sector on the Nigerian Exchange Limited (NGX).
Its 2.19 billion outstanding shares are valued at N63.5 per share as of July 26.
In a notable strategic move, Tolaram Group plans to acquire Diageo’s 58.02% shareholding in Guinness Nigeria.
This transaction, expected to conclude in Fiscal 2025, will include long-term license and royalty agreements for the continued production of the Guinness brand and Diageo’s locally manufactured spirits.
The deal is pending necessary regulatory approvals in Nigeria.
The financial results reflect the challenging economic environment, marked by increased operational costs and market volatility.
As Guinness Nigeria navigates these difficulties, the company is looking towards strategic partnerships to stabilize its financial position.
The recent changes in ownership structure could bring new opportunities for growth and market expansion.
However, the immediate focus remains on managing rising costs and improving financial performance.
As Guinness Nigeria charts its future course, industry analysts suggest that the company will need to focus on cost management and operational efficiency.
The anticipated completion of the Tolaram acquisition offers a potential path to revitalizing its market strategy and enhancing shareholder value.