Guinness Nigeria posts strong revenue and profit growth

Guinness Nigeria PLC has announced a robust financial performance for the first six months of 2026, with revenue climbing 11.8% to N265.04 billion from N237.00 billion in the same period last year. The company attributed this growth to the resilience of its brands and effective operational strategies amidst ongoing macroeconomic challenges.

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Our half-year performance demonstrates the continued resilience of our brands and the effectiveness of our operational strategies in navigating ongoing macroeconomic pressures.

The company's net profit after tax saw a substantial surge of 53.2% year-on-year, reaching N25.30 billion. This significant increase in profitability was fueled by strong domestic sales and disciplined capital management. Basic earnings per share also rose to 1,155 kobo from 754 kobo in the previous year's first half.

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The expansion in net profit reflects significant improvements in capital efficiency, reduced net borrowing costs, and disciplined execution across key market segments.

A key factor contributing to the profit growth was a sharp 64.9% reduction in finance costs, which fell from N12.44 billion to N4.36 billion. This was achieved by curtailing total loans and borrowings. Additionally, Guinness Nigeria successfully reversed its retained earnings deficit, bringing the balance to N15.70 billion from a deficit of N5.22 billion at the end of 2025, thereby strengthening its total equity to N64.25 billion.

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Wiping out the retained earnings deficit represents a vital milestone for the business, laying a solid balance sheet foundation for sustained equity value and long-term shareholder returns.

Despite the positive revenue and profit figures, the company faced headwinds from persistent cost inflation. The cost of sales increased by 13.5% to N167.57 billion, and marketing and distribution expenses rose due to higher logistics and promotional activities. Management remains focused on cost optimization, local sourcing, and market innovation to maintain momentum.

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While foreign exchange liquidity and inflationary pressures remain key operational considerations, management remains committed to cost-optimization, local sourcing, and market innovation to sustain momentum into the second half of the year.