Guinness Nigeria Plc, one of Nigeria’s leading breweries has released its half-year financial results for the half-year ending December 31, 2023.
According to the results, the company recorded a pre-tax loss of N4.43 billion, representing a 161.3% year-on-year decline from the N7.23 billion profit posted in the corresponding period in the previous fiscal year.
In the quarter ending December 31, 2023 (Q2 2024), the company recorded a remarkable pre-tax loss of N8.25 billion, marking a 358.4% decline from the N3.19 billion profit recorded in Q2 2023.
In H1 2024, the company recorded a revenue of N142.6 billion, representing a year-on-year growth of 20.4% year-on-year growth from the corresponding period in the previous fiscal year. During the quarter, Q2 2024, revenue hit N83.06 billion, representing a 26.6% year-on-year growth from the corresponding period in the previous fiscal year.
Key Highlights of the Report: Q2 2024 (Q2 2023, YoY% Change)
- Revenue: N83.06 billion (N65.60 billion, 26.6%)
- Cost of Sales: N55.26 billion (N41.55 billion, +33.0%)
- Gross Profit: N27.80 billion (N24.05 billion, +15.6%)
- Profit from operating expenses: N8.52 billion (N6.64 billion, +28.3%)
- Net finance expense: N16.77 billion (N3.45 billion, +385.8%)
- Loss (-)/Profit before tax: -N8.25 billion (N3.19 billion, -358.4%)
- Loss (-)/Profit for the period: -N7.83 billion (N1.28 billion, -713.7%)
What you should know
The surge of 385.8% in the company’s financial expenses is attributed to a N21.5 billion loss incurred as a result of the revaluation of the exchange rate.
This loss is broken down into components: a N17.28 billion loss stemming from the remeasurement of the company’s foreign currency balances, N3.66 billion from the exchange difference on foreign currency loans, and N596.74 million from the exchange difference on letter of credits.
In Q1 2024, Guinness Nigeria Plc posted a pre-tax profit of N3.82 billion and a net income of N2.6 billion, despite a foreign exchange loss of N3.56 billion during the quarter, which was 134.8% year-on-year higher than the corresponding quarter in the previous fiscal year.
However, in Q2 2024, there were increased losses due to the exchange rate revaluation, thus leading to a net loss of N7.83 billion.
