August 01, 2025/InvestmentOne Report

Guinness Nigeria Plc reported a strong recovery in FY:2025, achieving revenue of NGN 496.61 billion, a 65.80% increase from NGN 299.49 billion in FY:2024. The improvement was driven by domestic sales of NGN 489.34 billion and export sales of NGN 7.26 billion, reflecting effective pricing strategies and stronger market penetration. Cost of sales rose by 67.40% to NGN 348.22 billion, slightly outpacing revenue growth, resulting in a 62.30% increase in gross profit to NGN 148.39 billion, compared to NGN 91.46 billion in the prior year. Gross margin stood at 29.90%, marginally lower than the 30.50% recorded in FY:2024, highlighting the impact of input cost inflation and currency pressures. 

Guinness Nigeria is expected to consolidate its recovery by leveraging its broad product portfolio, strong distribution network, and strict cost management. Its continued focus on increasing local sourcing of raw materials should reduce FX exposure and support margin resilience. For FY 2026, revenue is projected to grow further through price optimisation and stable demand, with profit after tax anticipated to benefit from lower FX pressures and operational efficiencies. Given the circumstances around reduced inflation and positive exchange rate figures, we thereby put a BUY rating on Gunness as its growth potential continues to remain positive.

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