Guinness Nigeria Plc has reported a significant 53.3 percent rise in profit after tax to N25.30 billion for the year ended June 30, 2026, driven by strong revenue growth, improved operational efficiency, and a sharp decline in finance expenses. The company’s earnings per share climbed to N11.55 from N7.54 in the previous year, reflecting robust financial performance. Revenue for the period increased by 11.8 percent to N265.04 billion, up from N237 billion in the corresponding 2025 period, despite ongoing inflationary pressures affecting consumer spending.
Cost of sales rose by 13.5 percent to N167.57 billion, outpacing revenue growth and resulting in a slower 9 percent increase in gross profit to N97.47 billion from N89.38 billion. This led to a slight contraction in the gross profit margin to 36.8 percent from 37.7 percent, indicating that higher production and input costs are absorbing part of the sales gains. Administrative expenses grew by 4.8 percent to N16.23 billion, while marketing and distribution costs increased by 6.3 percent to N40.19 billion, both rising at a slower pace than revenue, which highlights better cost control.
Operating profit surged by 14.8 percent to N41.52 billion, with the operating profit margin improving marginally to 15.7 percent from 15.3 percent. The most significant factor behind the earnings boost was the 64.9 percent reduction in finance expenses, which fell to N4.36 billion from N12.44 billion. Although finance income declined to N1.18 billion from N3.93 billion, the net finance burden dropped substantially to N3.18 billion from N8.51 billion. This improvement pushed profit before tax up by 60.9 percent to N38.34 billion.
Income tax expenses rose sharply by 78.1 percent to N13.03 billion, increasing the effective tax rate to 34 percent from 30.7 percent, which limited the portion of pre-tax earnings reaching shareholders. In the second quarter alone, revenue jumped 19.9 percent to N142.27 billion, while gross profit grew 20.4 percent to N53.99 billion. Quarterly operating profit rose 34 percent to N24.34 billion, and profit after tax increased 57.3 percent to N14.91 billion.
The results indicate that Guinness Nigeria is regaining profitability through a mix of sales growth, tighter cost management, and reduced financing pressure. However, the narrowing gross margin signals that raw material, energy, and production costs remain high. As the benefit from lower finance costs diminishes, future growth may rely more heavily on revenue expansion and improved production margins. The company’s financial statement contains some alignment errors in quarter-to-date and year-to-date figures, prompting a call for a corrected version to ensure clarity for investors. Looking ahead, Guinness Nigeria’s ability to sustain momentum will depend on its capacity to manage input costs and maintain sales momentum in a challenging economic environment.
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