Earnings Update: Guinness Nigeria Plc Q2 2025 – Turning the Tide.

Event

Guinness Nigeria (“the Group”) staged a recovery in its Q2 2025 financial result, reporting a net profit after consecutive losses on both a year-on-year and quarter-on-quarter basis. This rebound was primarily driven by improved operating margin and FX gains realised during the period under review.

Revenue retained its steady growth, rising by 61% to N133.72 billion (Q2 2024: N83.06 billion). According to management, the revenue growth is reflective of the Group’s revenue generation strategies and geographical footprint expansion. We believe these strategies included strategic increment in prices of products.

Cost of goods sold kept pace with revenue, surging by 61% to N88.97 billion (Q2 2024: N55.26 billion) amid unabating inflationary pressures. However, gross margin held steady at 33% (Q2 2024: 33%).

Outlook

The rebound reported in Q2 2025 financial performance is a promising sign of enhanced operating efficiency and resilience. As the Group sustain its strategic price increases, and leverages Tolaram’s distribution strength, we anticipate robust revenue growth throughout the fiscal year. This operating leverage is also expected to sustain the improved operating margin.

Consequently, we revised our fair value for the stock to N69.92 (previously: N61.82), and we retain our HOLD recommendation for the stock.

Please follow the link “Guinness Nigeria Plc Q2 2025 – Turning the Tide” to view the whole report. 

Thank you.