Guinness Nigeria Plc has reported a pre-tax profit of N20.1 billion for the second quarter of 2024 under the management of its new parent company, Tolaram Group.
The profit comes just six months after Tolaram completed its acquisition of the Guinness Nigeria franchise from Diageo in June 2024.
The second-quarter performance signals a recovery from the pre-tax loss of N8.2 billion recorded in the same period last year and represents the company’s first quarterly profit since September 2023, when it posted a N3.8 billion pre-tax gain.
Guinness Nigeria also reported revenue of N133.7 billion for the quarter, bringing the year-to-date revenue to N259.6 billion. Representing an 82.06% increase when compared to the full year of 2023.
A Strategic Turnaround
Under Tolaram Group’s leadership, Guinness Nigeria has undergone a strategic transformation aimed at revitalizing the company’s operations.
The N20.1 billion pre-tax profit shows the success of Tolaram’s initial efforts to restructure the business and leverage its operational expertise.
Tolaram’s impact is evident in the broader financial performance for the half-year ending December 31, 2024.
Guinness Nigeria reported a pre-tax profit of N4.1 billion, a stark contrast to the N4.4 billion loss recorded in the corresponding period of 2023.
Revenue Growth Fuels Recovery
The company’s record-breaking revenue of N259.6 billion was driven primarily by domestic sales, which accounted for 98.5% of total revenue.
The surge in revenue offset a 107.54% year-on-year increase in the cost of sales, which rose to N200.5 billion. Despite these challenges, gross profit grew by 28.45% year-on-year to N59 billion.
Finance Income and Cost Management
Guinness Nigeria also recorded significant gains in finance income, which totaled N63.9 billion for the quarter, up by nearly 2,000% year-on-year.
These gains, driven by the remeasurement of foreign currency balances, helped offset finance expenses of N71.1 billion, resulting in a net positive impact on profitability.
Looking Ahead
Analysts have attributed the success to a combination of operational restructuring, strategic cost management, and a focus on maximizing revenue streams.
Investors King understands that the company’s new owners are considering a mandatory takeover of shares from minority shareholders, which could lead to the delisting of Guinness Nigeria from the Nigerian Exchange.
With Tolaram at the helm, Guinness Nigeria appears poised for sustained growth and profitability, signaling a new era for the iconic brand in Nigeria.
The company’s ability to post a profit in less than six months under new management is a testament to the strength of its turnaround strategy and its potential for long-term success.
