Headwinds: Guinness Nigeria Posts N62bn Loss after Tax
Losses sustained due to negative fluctuation of foreign exchange rate hurt Guinness Nigeria PLC as the brewer posted about N62 billion in its nine months of financial year 2024. Its earnings performance scorecard was further dented, peppered by a rising cost profile amidst surging inflation conditions in Nigeria.
Guinness Nigeria Plc reported a pre-tax loss of N60.4 billion, as against a profit of N9.9 billion in 9M-2023, details from its unaudited financial statements submitted to the Nigerian Exchange showed
Its loss after tax was a consequence of an 871.8% surge in finance costs, according to analysts. The breakdown of the finance costs indicated that most pressures were skewed to losses on the FX balance, stemming from the sustained pressure on the currency in the review period, CardinalStone Securities said in its update.
In this period, Guinness Nigeria PLC’s revenue grew strongly as a result of price hikes and increased export sales. Revenue from the Nigerian market grew by +27.5% and Export proceeds grew by 48.9%. Its financials showed the revenue grew by 27.7% year on year to N220.303 billion at the end of 9 months results for 2024, from N172.5 billion in the comparable period in 2023.
But the company’s costs of sales rose faster, up by 36.2% year on year to N152.643 billion from N112.093 billion at the end of 9M-2023. Still, gross profit was 12% higher year on year, settling at N67.66 billion at the end of 9m-2024 results.
Its 9m-2024 Operating profit was 27.5% higher than what was recorded 12 earlier, settling at N22.218 billion, details from its unaudited financial statements revealed. Deal wrecker for the company’s solid top-line performance was a significant surge in its finance costs.
Pushed by losses from FX revaluation, Guinness Nigeria’s finance cost rose by 872% year on year to settle at N90.214 billion from N9.283 billion at the end of 9 months of financial year 2023.
This headwind for the company redirects profitability trajectory. Guinness Nigeria Plc then posted an N61.652 billion loss versus N5.866 billion profit in the comparable period. On Q3’24 standalone, the company’s performance was uninspiring, as material FX loss masked the 43.8% increase in revenue, resulting in a pre-tax loss of N56.0 billion in the review quarter. NCS Begins Sensitisation to Automated Retiree Verification System
