GUINNESS | Guinness Nigeria - Earnings Update : Swing back to profitability in 9M’24/25

    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).

     

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    CardinalStone is a full service investment banking firm with a vision to build a world class investment banking firm of African origin; operating out of Lagos, Nigeria. The firm was incorporated in April 2008 and began operations in June 2008. CardinalStone is duly registered with the Securities & Exchange Commission in Nigeria to carry on business as an Issuing House, Fund Manager and Broker/Dealer The Firm's activities are carried out across five business units: Asset Management, Investment Banking, Private Equity, Securities Trading and the Business Support Group.
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