Guinness Nigeria Plc (NGX: GUINNESS, TP: N96.57, BUY) reversed its prior loss-making position in its unaudited 9M'24/25 results, reporting a net profit of N6.7 billion (vs a loss of N61.7 billion in 9M'23/24). This return to profitability was largely driven by strong topline growth and a significant reduction in foreign exchange losses. The result also marks a notable rebound from the company’s weak Q1'24/25 performance, underscoring an improving earnings trajectory.
Revenue grew by 71.6% YoY, supported by stronger domestic sales (+71.6% YoY) and higher export proceeds (+63.9% YoY). Despite this, gross margin contracted by 332bps to 27.4%, reflecting the impact of elevated production costs (+79.8% YoY). OPEX rose by 53.5%, driven by increased marketing (+31.5% YoY) and distribution (+57.5% YoY) expenses. As a result, operating profit margin moderated to 7.7% (from 10.1% in 9M’23/24).
