Guinness Nigeria Plc 2024FY audited results showed a loss per share of N25.00 (vs N8.29 in 2023FY). The negative out-turn in earnings resulted from weaker margins and higher net finance charges (+117.8% y/y). Guinness achieved a revenue growth of 30.5 per cent y/y in 2024FY (2023FY: +10.9% y/y) underpinned by higher pricing, product mix optimisation, and innovative product offerings.

In addition, the management cited strong growth across the non- alcoholic malt, ready-to-serve beverages, and international premium categories as contributors to this revenue increase. On pricing, findings indicate that the brewer implemented an average price increase of c. 20.0 percent during the year. On a quarter-on-quarter basis, revenue grew slightly by 1.9 per cent.

Gross margin contracted by 352bps y/y to 30.5 per cent (2023FY: 34.1%), following the heightened cost of sales (+37.5% y/y) in the review period. The higher cost of sales stemmed from high inflation, utility cost increases, and currency devaluation, leading to a 177.8% y/y surge in raw materials and packaging costs.

Consequently, EBIT and EBITDA margins declined to 11.9% (-246bps y/y) and 8.5 per cent (-170bps y/y), respectively, amid a rise in operating expenses (+18.7% y/y). Further down, net finance costs grew by 117.8 per cent y/y to NGN99.09 billion, as a 126.8 per cent y/y increase in finance costs more than offset the growth in finance income (+179.4% y/y).