Guinness Operating Cost Gulps N500.33bn, Hits 71% Of Revenue

Guinness Nigeria Plc spent a total of N500.33bn on operational costs during the eighteen-month period ended December 31, 2025, as inflationary pressures significantly raised the cost of goods and services across the country.

The operational expenditure represents 140.67 per cent of the company’s total revenue of N703.8bn recorded during the extended reporting period, underscoring the intensity of cost pressures faced by manufacturers in Nigeria’s challenging macroeconomic environment.

The figures are contained in the company’s audited financial results for the 18-month period ended December 31, 2025 tracked by THE WHISTLER.

The reporting cycle was extended following the company’s decision to change its financial year-end to December 31.

Consequently, the current financials cover the period from July 1, 2024 to December 31, 2025, making them not directly comparable with the previous 12-month reporting period.

Despite the elevated cost profile, Guinness Nigeria recorded strong top-line growth, with sales rising by 144 per cent year-on-year to N730.80bn, compared to N299.5bn in the 12-month period ended 2024.

Gross profit also increased significantly by 152 per cent to N230.48bn, up from N91.5bn in the prior year. Operating profit grew even more sharply, climbing 251 per cent to N89.26bn from N25.4bn previously.

Most notably, the brewer returned to profitability at the bottom line, posting a net profit after tax of N41.16bn, compared to a loss of N54.7bn recorded in the corresponding 12-month period in 2024.

The improved profitability performance comes amid what analysts describe as one of the most inflationary periods in recent years, marked by rising energy costs, foreign exchange volatility, logistics challenges, and higher raw material prices.

These macroeconomic headwinds significantly increased operating expenses across Nigeria’s manufacturing sector in 2025.

The board acknowledged that the extended 18-month reporting period may distort direct year-on-year comparisons but expressed confidence in the company’s performance trajectory. It reaffirmed its commitment to sustaining growth momentum and delivering long-term value to shareholders and other stakeholders.

Industry watchers note that while revenue growth remains strong, the elevated cost-to-revenue ratio highlights the continued strain on operating margins within Nigeria’s consumer goods space, as companies navigate persistent inflation and structural cost pressures.