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The Digest:

Guinness Nigeria has staged a dramatic financial turnaround, reporting a N26.3 billion profit after a significant loss, largely propelled by a foreign exchange revaluation gain. The Tolaram-backed company saw a fortune from revaluing its foreign currency balances, which soared to N89.1 billion, providing a crucial buffer against operational cost pressures.

Key Points:
  • Guinness Nigeria posted a N26.3 billion profit for the fifteen months to September.
  • The result is a major reversal from the N54.8 billion loss in the prior fiscal year.
  • A N89.1 billion gain from revaluing foreign currency balances enabled the profit.
  • Revenue climbed significantly to N594.7 billion, dominated by domestic sales.
  • The company is switching its financial year-end from June to December.
  • Operational efficiency remains a concern with a high cost-to-income ratio.
  • Despite the profit, the company faces a N101.1 billion financing gap for short-term obligations.
This financial recovery, rooted in a favorable currency storm, highlights the fragile nature of corporate turnaround in a volatile economy, where external winds can sometimes provide a much-needed, yet precarious, lift.

Sources: Premium Times
Tags: Guinness Nigeria, Tolaram,