February 18, 2026/Cordros Report

Guinness Nigeria Plc (GUINNESS) released its audited 18M-25 results yesterday, posting a 25.4% y/y increase in EPS to NGN6.79 in Q4-25, which lifted 18M-25 cumulative EPS to NGN18.79. The stronger performance was supported by modest revenue growth (+1.8% y/y) and EBIT margin expansion (+510bps y/y).

Revenue increased by 1.8% y/y to NGN136.13 billion in Q4-25 (18M-25: NGN730.81 billion), driven by disciplined pricing actions and resilient demand across key brands. On a q/q basis, revenue rose sharply by 38.8%, reflecting robust festive season demand and higher consumption across the portfolio.

Gross margin edged up by 14bps y/y to 33.6% in Q4-25 (18M-25: 31.5%), as cost of sales growth (+1.6% y/y) trailed revenue expansion. This reflects better cost absorption on higher volumes and moderating input cost pressures.

Meanwhile, operating expenses declined by 24.3% y/y to NGN20.23 billion in Q4-25 (18M-25: NGN141.50 billion), reflecting broad-based reductions across key cost lines—marketing expenses (-86.8% y/y), distribution costs (-25.4% y/y), and administrative overheads (-19.9% y/y). As a result, EBIT and EBITDA margins expanded by 510bps y/y and 590bps y/y to 18.6% and 21.4%, respectively (18M-25: 12.2% and 14.9%).

The company reported net finance costs of NGN781.91 million in Q4-25 (vs. net finance income of NGN2.02 billion in Q4-24), primarily driven by a 49.0% y/y rise in finance charges on borrowings to NGN6.24 billion. For 18M-25, net finance costs settled at NGN20.88 billion.

Overall, profit before tax increased by 22.1% y/y to NGN24.60 billion in Q4-25, while profit after tax grew by 25.4% y/y to NGN14.88 billion. For 18M-25, profit before tax came in at NGN68.39 billion and profit after tax settled at NGN41.16 billion.

Comment: GUINNESS exited the transitional 18-month period on a strong operational footing, with Q4-25 reinforcing a structurally improved earnings base underpinned by steady revenue growth, tighter cost discipline, and strong operating leverage. The pronounced reduction in operating expenses translated into a material expansion in EBIT and EBITDA margins. Looking into 2026FY, we expect earnings momentum to be supported by resilient margins, continued pricing discipline, portfolio strength, and potential FX-related upside amid relative naira stability. That said, heightened competitive intensity in the domestic brewing market remains a key watchpoint. Our estimates are under review.\\