Guinness Nigeria Plc’s after-tax loss stood at N12.2 billion in the nine months of 2024 from an after-tax profit of N2.59 billion in the same period of 2023.
The firm’s revenue grew to N125.9 billion from N59.5 billion during the period reviewed while cost of sales grew to N111.6 billion from N41.4 billion.
Diageo announced that it has completed the sale of its shareholding in Guinness Nigeria PLC to Tolaram. The sale was announced on 11 June 2024.
Guinness Nigeria PLC will continue the production and nationwide distribution of Guinness and its other locally manufactured brands in Nigeria under a licence and royalty agreement reflecting Diageo’s efficient and flexible beer operating model.
This transaction is in line with Diageo’s Growth Ambition to deliver the company’s next phase of sustainable growth.
In June 2024, Diageo and Tolaram announced a proposed transaction that would have Diageo transfer ownership of its 58.02 percent shareholding in Guinness Nigeria to Tolaram, making Tolaram the new majority shareholder, while establishing long-term license and royalty agreements for the company’s continued production, marketing and sale of the Guinness brand and all its locally manufactured Diageo ready-to-drink and mainstream spirits brands in Nigeria.
The successful completion of the transaction marks the beginning of a new era for the Company’s long standing presence in Nigeria where it has for over seven decades been intricately woven into the fabric of Nigerian culture and society. Guinness Nigeria, one of the most reputable corporate entities in Nigeria known for iconic brands like Guinness, Malta Guinness and Orijin remains firmly rooted in Nigeria and is set to continue its historic journey in the country, leveraging the vast experience and footprints of Tolaram.
Read also: Guinness Nigeria takes a hit from FX revaluation, posts N12 billion loss in three months
Here are seven key highlights from Guinness Nigeria financials:
Local sales contributed most to total revenue
Sales in the Nigerian market contributed N124.2 billion to the total revenue of N125.9 billion in September 2024 while export sales contributed N1.65 billion.
Nigeria sales stood at N124.2 billion from N58.7 billion while export sales increased to N1.65 billion from N843.7 million.
Net finance expense jumped to N9.17bn
Guinness Nigeria’s net finance expense jumped to N9.17 billion from N4.06 billion.
Finance income grew to N2.44 billion from N563.9 million while finance cost surged to N11.61 billion from N4.62 billion.
Input cost
The firm incurred N111.6 billion input cost from N41.4 billion during the period reviewed.
Cash flows
Cash used in operating activities surged to N26.9 billion from N4.47 billion.
Net cash used in investing activities increased to N6.96 billion from N2.16 billion while net cash used in financing activities increased to N14.8 billion from N7.51 billion.
Cash and cash equivalents stood at a negative of N9.17 billion from a positive of N76.3 billion.
Sales of by-products contributed the most to other income
Sales of by-products contributed N46.04 billion to the other revenue while gain on disposal of property, plant and equipment contributed N21.8 billion.
Guinness Nigeria’s other income dropped to N67.8 million from N1.39 billion.
Marketing and distribution expenses
Marketing cost grew to N6.18 billion from N4.55 billion while distribution expenses grew to N7.13 billion from N3.76 billion.
Earnings per share
The firm recorded a loss per share of N12.2 from an earnings per share of N119 during the comparable period.
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