Last Updated on 26 July 2024 by Naijadazz
Lagos, Nigeria – July 26, 2024 – Guinness Nigeria Plc has announced a pre-tax loss of N73.6 billion for the financial year ending June 30, 2024, primarily due to the adverse effects of foreign exchange devaluation on its foreign currency loans. This financial downturn comes amidst a significant ownership change, with Diageo Plc selling its majority stake to Tolaram Plc, ushering in a new strategic direction for the company.
Despite a 31% increase in revenue, reaching N299.5 billion from N229.4 billion the previous year, the company faced escalating challenges. Net finance costs more than doubled to N99.1 billion, significantly contributing to the overall loss and overshadowing the revenue growth. The financial results also reveal a net loss of N54.8 billion, a dramatic 201% increase from the N18.2 billion loss recorded the prior year. Nonetheless, profit from operating activities saw a modest rise of 9%, climbing to N25.4 billion from N23.4 billion in 2023.
Guinness Nigeria’s market capitalization stood at N139.1 billion, with 2.19 billion outstanding shares and a share price of N63.5 as of July 26, 2024. The ownership transition from Diageo to Tolaram is expected to bring new strategies and potential restructuring, aiming to stabilize and grow the business. Long-term agreements will ensure the continued production of Guinness and other Diageo brands.
Given the substantial losses, Guinness Nigeria has decided not to recommend any dividends for the upcoming Annual General Meeting, in contrast to the N15.6 billion distributed in 2023. This decision underscores the company’s focus on addressing its financial challenges and adapting to its new ownership structure.
As Guinness Nigeria navigates these financial difficulties, stakeholders will closely watch how Tolaram’s management addresses these hurdles and leads the company toward recovery in a challenging economic landscape.
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