Guinness Nigeria Plc (GUINNESS) delivered an impressive performance over the last 12 months (June 2024 - June 2025), reversing its previous loss to record a profit of N16.2 billion for the period. The earnings resurgence was driven by sustained pricing power, stable volumes, and cost discipline. In addition, the company reported improvements in the quality of its balance sheet, with the Debt-to-Equity ratio improving to 3.5x compared to 18.6x in FY'23/24. The superior leverage posture reflects both earnings-driven equity accretion and a conscious effort by management to moderate foreign currency debt exposures. In light of these developments, we have upgraded our 12-month Target Price ("TP") to N181.38, while maintaining our BUY recommendation.
