Guinness Nigeria Plc reported a ₦12.2 billion net loss for the quarter ending September 30, 2024, down from ₦2.6 billion in profit last year.
Revenue rose 111 per cent to ₦125.9 billion, but rising costs and an ₦8.4 billion FX loss led to negative equity of ₦10 billion.
New Managing Director Girish Sharma aims to restore profitability after Diageo sold its stake to Tolaram Group.
In the competitive landscape of Nigerian business, Guinness Nigeria Plc recently reported a staggering net loss of ₦12.2 billion for the quarter ending September 30, 2024.
This figure represents a dramatic 568 per cent decline compared to the ₦2.6 billion net profit recorded in the same period last year.
Primarily, the losses were driven by a significant drop in sales volume, which led to a reduced gross profit margin.
Additionally, the company faced foreign exchange revaluation losses of ₦8.4 billion, a sharp increase from the ₦3.3 billion recorded in Q1 2024.
Despite reporting a revenue of ₦125.9 billion—an impressive 111 per cent increase from ₦59.5 billion in Q1 2024—rising costs overshadowed this growth.
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Specifically, total costs surged by 170 per cent to ₦111.6 billion, resulting in a 21 per cent decline in gross profit, which fell to ₦14.3 billion.
Furthermore, marketing and distribution expenses climbed to ₦13.3 billion, a 60 per cent increase from the previous year.
Consequently, this resulted in a pre-tax loss of ₦16 billion for the quarter, contrasting sharply with the ₦3.8 billion profit from Q1 2024.
In a significant move, Diageo International sold its stake in Guinness Nigeria to the Tolaram Group, leading to Girish Sharma assuming the role of Managing Director.
Moreover, the company also managed to pay off ₦39.3 billion in loans while taking on a new ₦30 billion letter of credit loan.