By Joe Udo
LAGOS (CONVERSEER) – Guinness Nigeria Plc spent a total of N500.33bn on operational costs during the eighteen-month period ended December 31, 2025, as inflationary pressures sharply raised the cost of goods and services across Nigeria.
The operational expenditure amounted to 140.67 per cent of the company’s total revenue of N703.8bn recorded during the extended reporting period, highlighting the severe cost pressures confronting manufacturers in Nigeria’s difficult macroeconomic environment.
The figures are contained in the brewer’s audited financial results for the 18-month period ended December 31, 2025. The reporting cycle was extended after the company changed its financial year-end to December 31.
As a result, 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, the company delivered strong top-line growth. Sales surged by 144 per cent to N730.80bn, compared with N299.5bn recorded in the 12-month period ended 2024.
Gross profit rose by 152 per cent to N230.48bn, up from N91.5bn in the prior year. Operating profit also recorded a sharp increase, climbing by 251 per cent to N89.26bn from N25.4bn previously.
At the bottom line, the brewer returned to profitability, posting a net profit after tax of N41.16bn. This represents a significant turnaround from the N54.7bn loss recorded in the corresponding 12-month period in 2024.
Analysts attribute the improved performance to strong pricing, volume growth, and operational efficiencies, achieved despite one of the most inflationary periods in recent years. The period was marked by rising energy costs, foreign exchange volatility, logistics constraints, and higher raw material prices, all of which drove operating expenses higher across Nigeria’s manufacturing sector.
The board acknowledged that the extended 18-month reporting period could 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 observers, however, note that while revenue growth remains robust, the elevated cost-to-revenue ratio underscores the persistent strain on operating margins within Nigeria’s consumer goods sector, as companies continue to navigate inflationary and structural cost pressures.
