Guinness Nigeria Plc reported a pre-tax loss of N73.6 billion for the financial year ending June 30, 2024, primarily due to forex devaluation affecting its foreign currency loans. The brewery giant, recently acquired by Tolaram Plc from Diageo Plc, continues to face financial challenges amidst the takeover.
Guinness Nigeria Plc has reported a significant pre-tax loss of N73.6 billion for the financial year ending June 30, 2024. This downturn is largely attributed to the adverse effects of foreign exchange devaluation on the company’s bottom line, particularly impacting its foreign currency loans.
The company’s earnings report indicates that the losses persisted into the fourth quarter, exacerbating the overall annual financial performance. Guinness Nigeria’s financial struggles come amid a major ownership change, with its parent company, Diageo Plc, selling its majority stake to Tolaram Plc.
This transition marks a new chapter for the brewery giant, which has faced considerable financial challenges due to the volatility of the forex market. The depreciation of the naira against major foreign currencies significantly inflated the cost of servicing its foreign loans, undermining the company’s efforts to stabilize its financial performance.
Despite these setbacks, Guinness Nigeria’s management remains committed to navigating through these turbulent times. The new ownership under Tolaram Plc is expected to bring strategic changes aimed at revitalizing the company’s fortunes. Industry observers are keen to see how this acquisition will impact the brewery’s operations and financial health moving forward.
The financial challenges faced by Guinness Nigeria highlight the broader economic issues impacting Nigerian businesses, particularly those reliant on foreign loans and exposed to currency fluctuations. The coming months will be crucial in determining the effectiveness of Tolaram Plc’s intervention in turning around the company’s fortunes.
