Guinness Nigeria’s Stellar Turnaround: N26.3bn Profit in 15 Months Under Tolaram
Guinness Nigeria is sipping champagne 🎉! The iconic brewer has made a stunning comeback, posting a remarkable N26.3 billion profit in just 15 months under Tolaram’s management. This turnaround is nothing short of impressive, driven by robust revenue growth, improved cost management, and a more stable macroeconomic environment. With Tolaram’s strategic overhaul, Guinness Nigeria is brewing success like never before! What’s next for this Nigerian brewing giant?
Guinness Nigeria’s operating efficiency has shown significant improvement, with its operating margin rising to 9.5% in the financial year ended June 30, 2025, up from 8.48% in the previous year. This notable increase is a testament to the company’s ability to manage costs effectively, as evidenced by the slower growth rate of operating expenses compared to revenue. The operating expenses grew to N101.2 billion, a 46% increase from N69.2 billion, which is a slower pace compared to the revenue expansion. This improvement in operating efficiency can be attributed to the influence of Tolaram Group, which recently acquired a majority stake in the company, bringing about restructuring and integration efforts.
The company’s return to profitability is a significant milestone, posting a net profit of N16.2 billion in FY2025, a stark contrast to the N54.8 billion loss in FY2024. This turnaround is driven by robust revenue growth, improved cost management, and a more stable macroeconomic environment. The revenue for the period surged to N496.6 billion, up 66% from N299.5 billion in FY2024, demonstrating the company’s ability to drive growth despite challenging market conditions.
Guinness Nigeria’s balance sheet has seen significant gains, with total assets growing 21% to N273.5 billion and shareholders’ equity rising to N18.4 billion. This growth is a testament to the company’s improved financial health and its ability to attract investments. The return on equity (ROE) has spiked to 157%, indicating that the company is generating significant profits from its shareholders’ equity. Additionally, the return on average assets has improved to 6.5%, demonstrating the company’s ability to generate profits from its assets.
However, the company’s cash flow has tightened, with a cash balance of N4.1 billion at year-end, down from N45.8 billion in FY2024. This decrease is largely due to the company’s repayment of N76.4 billion in loans and principal during the year, which impacted its cash reserves. Despite this, the operating cash flow stood at N38.4 billion, and after investing N26.2 billion in capital expenditure, the company was left with a free cash flow (FCF) of N12.2 billion. This highlights the need for the company to address its cash generation to maintain momentum.
Guinness Nigeria has made a remarkable comeback under Tolaram’s management, posting a net profit of N26.3 billion for the 15 months ended September 2025. The company’s revenue surged to N496.6 billion, driven by domestic sales and strategic pricing. Operating profit also rose significantly to N63.9 billion, reflecting tighter cost control and more disciplined execution. Tolaram’s acquisition of Guinness Nigeria in June 2024 has brought about significant changes, including operational restructuring and strategic cost management. The company has also focused on maximizing revenue streams and improving its distribution network
