9M 2023
Naira decline drags Guinness Nigeria to net loss of N61.7 billion
Guinness Nigeria Plc has released its unaudited financial statement for the nine-month period ending March 31, 2024, revealing a loss after tax of N61.7 billion.
The figure reflects a decline from the N5.9 billion profit after tax reported in the corresponding period of 2023.
In nine-month 2024 financial report, Guinness posted a revenue of N220.3 billion, marking a 28% year-on-year growth from the N172.5 billion revenue posted in the corresponding period of the previous fiscal year.
However, a N83 billion loss due to the foreign exchange (FX) revaluation caused the company to report negative balances during the period.
Key highlights 9M 2024 vs 9M 2023
- Revenue: N220.3 billion, +28% YoY
- Cost of sales: N152.6 billion, +36% YoY
- Gross profit: N67.7 billion, +12% YoY
- Marketing and distribution expenses: N35.3 billion, +12% YoY
- Finance expense: N90.2 billion, +872% YoY
- Net finance expense: N82.7 billion, +1004% YoY
- (Loss)/Profit before tax: (N60.5 billion), -708% YoY
- (Loss)/Profit for the period: (N61.7 billion), -1151% YoY
- Total assets: N234.7 billion, -3% YTD
- Cash and cash equivalents: N68.5 billion, +18% YoY
What you should know
The net loss incurred by Guinness Nigeria has wiped off its N7.9 billion retained earnings as of June 30, 2023, thus pushing the company to a retained losses of N53.3 billion. The company’s retained losses have pushed it to a negative equity of N4.7 billion.
The company’s interest expense on loans and borrowings during the period under consideration hit N5.6 billion, marking a 490% year-on-year increase from the N954.1 million interest expense posted during the corresponding period in the previous fiscal year.
Due to the Naira decline, the company incurred an exchange difference of N15.3 billion on its foreign currency loan as well as an N83 billion loss due to the remeasurement of its foreign currency balances. However, with an unrealized foreign exchange loss of N37.1 billion, tendencies exist for the group to reverse its FX losses.
