Guinness Nigeria Profit Rises 55% to N61.65bn in 9M 2026 as Finance Costs Fall; N7 Interim Dividend Declared

Guinness Nigeria profit before tax rose 55.34% to N61.65 billion in the nine months to September 2026, up from N39.69 billion a year earlier, according to unaudited results the brewer filed with the Nigerian Exchange (NGX) on 21 October and analysed by Nairametrics. The jump came less from sales than from a sharp fall in borrowing costs. The board also declared an interim dividend of N7.00 per share.

Revenue grew about 20%, but finance expenses fell by almost two-thirds. For a company that spent recent years weighed down by foreign-exchange losses and expensive debt, that shift is the main story of these results.

Guinness Nigeria profit: the nine-month numbers

Figures below are for the nine months to September 2026 against the same period of 2025, as reported by Nairametrics analyst Kelechi Mgboji:

• Revenue: N403.33 billion, up 20.37% from N335.07 billion.
• Gross profit: N151.38 billion, up 20.41%. Gross margin was flat at about 37.5%.
• Operating profit: N64.98 billion, up 23.45% from N52.64 billion. Operating margin improved to 16.11% from 15.71%.
• Finance expenses: N5.83 billion, down 61.88% from N15.30 billion.
• Profit before tax: N61.65 billion, up 55.34%.
• Profit after tax: N40.69 billion, up 53.05% from N26.59 billion.
• Earnings per share: N18.58, up from N12.14.

Domestic sales made up N397.04 billion, about 98% of revenue. Export sales rose 23.85% to N6.29 billion.

Lower interest costs did the heavy lifting

Interest on loans and borrowings fell to N5.61 billion from N14.66 billion. Nairametrics calculates that finance costs absorbed about 9% of operating profit, compared with about 29% a year earlier. That gap explains most of the difference between 23% growth in operating profit and 55% growth in pre-tax profit.

Total loans and borrowings fell 13% to N38.21 billion, about 77.5% of it short-term. During the period, Guinness repaid N90.29 billion of loans and took on N83.28 billion of new borrowing, so it is still rolling over debt, but on a smaller base.

Costs of running the business rose roughly in line with sales. Marketing and distribution expenses grew 18.38% to N62.91 billion, and administrative expenses rose 19.35% to N24.12 billion.

A strong third quarter

The third quarter alone was the best of the year. Q3 revenue rose 41.01% to N138.29 billion, gross profit increased 48.35% to N53.91 billion, and operating profit climbed 42.34% to N23.46 billion. Profit before tax for the quarter was N23.32 billion, up 46.99%, and profit after tax rose 52.67% to N15.39 billion, about 37.8% of the nine-month total. Q3 earnings per share were N7.03.

Dividend: N7 per share, payable 13 November

The board declared an interim dividend of N7.00 per share, worth about N15.33 billion in total. Key dates:

• Qualification date: 30 October 2026.
• Payment date: 13 November 2026.

At the last traded price of N423.00, the interim payout equals about 1.7% of the share price. Over the nine months, the company declared N19.71 billion and paid N19.27 billion in dividends.

Balance sheet: cash is thin

The income statement is strong, but the balance sheet shows tighter liquidity:

• Cash and cash equivalents fell 79.95% to N1.40 billion from N6.97 billion at end-2025.
• Bank overdrafts rose to N2.80 billion from N523.54 million, leaving net cash at minus N1.41 billion.
• Inventories rose 43.27% to N65.65 billion, with finished goods up 144.5% to N17.50 billion.
• Trade and other payables were N134.50 billion, about 72.8% of current liabilities.
• Shareholders' equity grew 48.42% to N64.30 billion; total assets rose 10.74% to N271.51 billion.

The inventory build could be stock ahead of the festive season, when beer and stout sales usually peak. If that is the case, cash should recover in the fourth quarter. If sales disappoint, the company will be carrying expensive stock with little cash cushion.

What the market may do

Guinness Nigeria shares closed at N423.00 on 21 October, unchanged since 12 October, Nairametrics reports. The stock is up 20.9% this year from N349.90, and the company has about 2.19 billion shares outstanding, giving a market value of roughly N927 billion. The results came out after trading closed, so the market had not yet reacted.

Investors weighing the stock will look at whether lower finance costs last. Nigeria's interest-rate picture is mixed: the central bank cut its policy rate in September, yet government bond yields have risen, as we reported in Nigeria 10-Year Bond Yield Climbs to 17.05%. A company with mostly short-term debt is exposed if borrowing costs turn up again.

Key takeaways

• Guinness Nigeria profit grew far faster than sales because interest costs collapsed.
• Q3 was the strongest quarter, with revenue up 41%.
• Shareholders on the register by 30 October get N7.00 per share on 13 November.
• Cash is low and inventories high, which makes festive-season sales important for Q4.

This article is for information only and is not investment advice.