In its Q2'24/25 earnings, Guinness Nigeria Plc (GUINNESS) delivered its strongest quarterly performance in over a decade. The strong performance was aided by easing cost inflation and FX volatility, which we expect to positively cascade to other players in the sector in varying degrees. Given these favourable dynamics, we have revised our 12-month Target Price ("TP") upward to N96.57 (from N85.69) while maintaining our BUY recommendation.
As reflected in its H1'24/25 financials, GUINNESS has sustained impressive topline growth, reporting an 82.1% increase in revenue. This growth was fueled by strategic price adjustments, expanded retail distribution, enhanced brand visibility, and robust volume expansion across all product categories, particularly malt.
