Guinness bounces back to profit despite inflation headwinds

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By Obianuju Uzukwu

In a surprising turnaround, Guinness Nigeria has swung back to profitability, defying a turbulent inflationary environment that has squeezed margins across the FMCG sector. The brewer’s latest financials signal a resilient recovery, fueled by strategic cost management, product innovation, and a recalibration of its market approach.

The rebound positions Guinness as a comeback story in Nigeria’s struggling consumer goods landscape. The beer maker also benefited from a reduction in foreign exchange revaluation losses that had tipped it over the edge.

Guinness Nigeria posted a profit after tax (PAT) of N16.20 billion in the first six months of 2025, from a loss position of N54.76 billion as at June 2024.

Revenue was up 65.82 percent to N496.60 billion in June 2025 as the growth was primarily driven by higher prices and improvement in volume.

An analysis by MoneyCentral indicates that all segments contributed to the overall revenue growth, with the most significant increase in malt sales.

Guinness had taken some strategic measures such as discontinuation of certain Diageo premium spirits—such as Johnnie Walker, Singleton, and Baileys, which we believe posed an exchange rate risk as they are imported products, which have clinked.

It is important to note that Tolaram’s acquisition of Diageo’s 58.02 percent stake in Guinness is driving growth and efficiency.

The brewer is reeling from rising input costs due to imported inflation as it imports some of its raw materials as well as higher energy costs.

Cost of sales were up 67.38 percent to N348.21 billion in the period under review from N208.03 billion the previous year.

Despite rising cost of production, profit margins have improved.