Guinness Nigeria records 61% revenue growth amid inflationary pressures
NIGERIA – Guinness Nigeria Plc has reported a 61 percent year-on-year (y/y) revenue growth for Q2 2025, achieving N133.7 billion (US$87.74M) for the quarter.
This brings its year-to-date revenue to N259.6 billion (US$170.36M), an 82.06 percent increase compared to the full-year revenue of 2023.
Domestic sales accounted for 98.5 percent of total revenue, while export sales contributed 1.5 percent.
Despite the impressive revenue growth, the company faced a significant increase in operational costs, with the cost of sales rising by 107.54 percent year-on-year to N200.5 billion (US$131.58M).
This contributed to a decline in operating profit, which fell to N11.2 billion (US$7.4M) from N16.3 billion (US$10.7M) in the previous year.
However, a surge in topline revenue helped Guinness Nigeria achieve profitability, with operating profit increasing to N18.1 billion (US$11.88M) for the quarter. This performance helped mitigate the pressures of escalating costs and operational expenses.
Finance income also played a key role in improving the company’s financial position. While finance expenses more than doubled to N59.5 billion (US$39.05M), they were offset by a surge in finance income, which totaled N63.9 billion (US$41.93M).
This was primarily attributed to gains from the remeasurement of foreign currency balances, which accounted for 99.51 percent of the finance income.
Commenting on the results, Guinness Nigeria CEO Sharma stated, “Our H1’25 performance is a testament to our agility and determination to navigate economic challenges while focusing on long-term growth. The 82.2 percent revenue increase reflects the effectiveness of our portfolio and geographic expansion, and the effective execution of key strategic priorities.”
During an investors’ conference call, Sharma highlighted key factors driving the company’s performance, including supply chain efficiencies, expanded distribution networks, and leadership development within the organization.
He also emphasized the impact of strategic activities in the previous quarter, such as sponsorships and brand awareness campaigns, which engaged consumers and strengthened Guinness Nigeria’s market presence.
In June 2024, Tolaram Group acquired Diageo’s stake in Guinness Nigeria for a share price of N81.60 (US$0.05) per share.
Despite the acquisition from Diageo, Guinness Nigeria retained the rights to manufacture and distribute the Guinness brand and other Diageo brands, including Johnnie Walker, Singleton, and Baileys.
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