With N12.17bn loss in 2024 first quarter financial report Guinness Nigeria battles insolvency & liquidation

Guinness Nigeria, one of the leading brewers in the country, is struggling to stay afloat as it had issues meeting its financial obligations due to its liabilities that outstripped assets in the first quarter of 2025 ended September 2024.
According to its financial statements for the period submitted to the Nigerian Exchange, Guinness suffered a N12.17bn loss compared to the N2.6bn post-tax profit it recorded in the prior period of last year.

While the firm’s total assets grew by 8.79 per cent to N246.01bn in September from N226.13bn in June, which was the brewer’s year-end for the financial year 2024, its total liabilities shot up by 14.31 per cent to N256.02bn in Q1 2025 from N223.97bn in June 2024.

This indicated that Guinness Nigeria has entered into accounting insolvency, as its debt-liability ratio stood at 1.04.
Accounting insolvency is when a company’s liabilities exceed its assets.

The growth in the brewery’s total liabilities was driven by the N22.29bn bank overdrafts it took during the period under review.

It improved revenue by a whopping 111.44 per cent to N125.89bn in Q1 2025, compared to N59.54bn in the corresponding period of last year, on the back of local income that rose by 111.68 per cent to N124.24bn and exports that went up by 95.21 per cent to N1.65bn.
However, the impressive revenue growth was weighed down by marketing and distribution expenses that ballooned by 60.01 per cent to N13.3bn from N8.31bn in Q1 2024 and administrative, which soared by 135.75 per cent to N7.89bn instead of N3.35bn in Q1 2024.

During the period under review, Guinness Nigeria’s finance income appreciated by 332.72 per cent year-on-year to N2.44bn, and its finance cost jumped by 151.24 per cent year-on-year to N11.61bn.

The brewer’s retained earnings worsened by 26.23 per cent to N58.55bn loss from N46.38bn loss as of June 2024.
For the full year 2024, which ended June 30, 2024, Guinness Nigeria suffered a N73.68bn loss due to currency devaluation, fuel subsidy removal, and insecurity, which triggered a tough operating environment.

However, the firm’s share appreciated 5.33 per cent to N63.20 at the close of trading on Friday.
Business.ng recalls that Diageo announced on September 30 that it had completed the sale of its stakes in Guinness Nigeria to Tolaram.
Reacting to the firm’s 2024 performance at its Annual General Meeting in Lagos recently, the Chairperson of Guinness Nigeria Plc, Dr Omobola Johnson, noted that during the period under review, Guinness Nigeria proactively realigned and repositioned itself to effectively adapt to the changing landscape of the FMCG sector in Nigeria..

“We continue to place a premium on the constant delivery of quality products to our consumers in relentless pursuit of our aim to be one of the best performing, most respected consumer products companies in Nigeria,” she stated.

The former Nigerian communications minister emphasised the company’s strong focus on innovation and consumer satisfaction, which she identified as key drivers of its success.

The brewer’s managing director, Girish Sharma, declared, “Guinness Nigeria is one of the country’s leading companies, and while we have faced challenges such as currency volatility, we are taking decisive steps to address them. My three key priorities are restoring profitability, improving production efficiency, and building a strong, empowered team.
“Our goal is to ensure every bottle we produce is more profitable and efficiently made. By empowering our teams, I am confident we will drive sustainable growth.”

According to Sharma, despite macroeconomic challenges like inflation and FX volatility, Guinness Nigeria continues to deliver strong results through operational efficiency, innovation, and sustainability.
“Our transition under the new ownership presents exciting growth opportunities, including local sourcing initiatives that will drive both revenue and job creation.

“As we embark on this new chapter, we remain committed to sustainable practices, strong governance, and community engagement. These values, along with our innovative strategies, will position us for even greater success,” he asserted.