Prime Business AfricaGuinness Nigeria reported N259,60 billion revenue in the year ended 2024, a 82.05 per cent increase compared to the N142.59 billion turnover recorded the previous year.
However, an analysis by Prime Business Africa showed that 77.27 per cent of the revenue generated last year was gulped by the cost of production, increasing from 67.78 percent consumed in 2023.
Join our WhatsApp ChannelThe company’s inability to tame the cost of sales led to an increase of 107.53 percent in production expenses, eclipsing the growth recorded in Guinness’ revenue.
Gunness production expenses rose to N200.59 billion from N96.65 billion, reflecting the brewer spent N103.94 billion more on making its products available in the market last year.
But the 82.05 percent increase in turnover offset the hike in the cost of sales, resulting in a 28.44 percent climb in gross profit – which advanced from N45.93 billion to N59 billion – compared to the 8.62 percent uptick achieved in 2023.
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Nevertheless, finance expenses, which comprise costs incurred from borrowings from lenders and foreign currency letter of credits, ate into the company’s earnings, as it went up by 66.41 percent from N23.88 billion to N71.11 billion.
Guinness, however, managed to offset the impact with a 1,993.9 percent increase in finance income – driven majorly by the gain on remeasurement of foreign currency balances – which surged to N63.96 billion from N3.05 billion.
This helped the brewer record N4.10 billion as profit before tax (PBT) in 2024, having reported N4.43 billion loss before tax in 2023.
Consequently, the alcoholic drink producer was able to cut down its loss after tax by 94.21 percent to N302.75 million in the reviewed period from N5.23 billion the year before.
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