Guinness Nigeria declares N2 interim dividend as profit hits N10.39bn

Guinness Nigeria Plc is set to pay shareholders an interim dividend of N2.00 per ordinary share for the first quarter of 2026 after the brewer grows its net profit by about 48 percent in the first three months of 2026.

In a corporate filing on Tuesday, the brewer said the dividend, subject to applicable withholding tax and shareholder approval, will be paid to investors on the register at the close of business on April 20, 2026.

The interim dividend translates to a total payout of approximately N4.38 billion, based on 2.19 billion shares outstanding.

The dividend resumption follows a return to positive retained earnings of N5.17 billion, reversing a negative balance of N5.22 billion recorded at the end of 2025.

“A 48% growth in profit after tax is not accidental; it is the result of sustained governance oversight, strategic clarity, and the dedication of our management team and employees,” said Fabian Ajogwu, the company’s board chair.

“As a Board, we remain firmly committed to rewarding our shareholders while ensuring that Guinness Nigeria is positioned for sustainable, long-term growth. This dividend is a statement of confidence in our business, our people, and the resilience of our strategy.”

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The company reported an after-tax profit of N10.39 billion for the quarter ended March 31, 2026, representing a 47.9 percent increase from N7.03 billion in the corresponding period of 2025. The growth was driven by an improved financing position and moderated operating expenses.

Revenue rose by 4 percent to N122.77 billion from N118.34 billion in the prior period, supported largely by domestic sales, which accounted for more than 98 percent of total revenue.

However, cost pressures persisted. Cost of sales increased by 7.4 percent to N79.30 billion, leading to a decline in gross profit to N43.48 billion from N44.52 billion a year earlier, indicating pressure on margins.

Operating profit showed slight moderation, with profit from operating activities declining to N17.18 billion from N17.99 billion, as administrative expenses increased to N8.12 billion from N7.68 billion. Marketing and distribution expenses edged lower to N18.49 billion from N18.88 billion.

A significant reduction in finance costs supported earnings. Finance costs dropped to N2.48 billion from N7.78 billion, while finance income rose to N1.05 billion from N61.35 million, driven by foreign exchange gains and income from concessional facilities.

As a result, profit before tax increased to N15.75 billion from N10.28 billion, while tax expenses rose to N5.35 billion from N3.25 billion, reflecting higher taxable income.

On the balance sheet, total assets declined to N238.32 billion from N245.18 billion at the end of 2025, largely due to a drop in cash and cash equivalents to N1.63 billion from N6.97 billion.

Trade receivables fell to N31.47 billion from N38.35 billion, indicating improved collections, while inventories remained relatively stable at N45.97 billion.

Total liabilities decreased to N184.61 billion from N201.85 billion, driven by reductions in current liabilities, including contract liabilities and tax obligations. However, trade and other payables increased to N145.12 billion, suggesting continued reliance on supplier credit.

Short-term borrowings rose to N36.84 billion from N30.97 billion, while long-term borrowings declined to N6.65 billion from N7.08 billion, indicating a shift toward short-term financing.

Equity increased to N53.72 billion from N43.32 billion, supported by the recovery in retained earnings.

“Our capital allocation decisions remain grounded in disciplined execution, financial prudence and a clear focus on long-term value creation,” said Girish Sharma, MD/CEO of Guinness Nigeria.

“The interim dividend reflects the outcome of improved operational efficiency and a measured approach to capital deployment while maintaining balance sheet strength and performance stability.”

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Cash flow analysis shows that the money made from regular business activities rose to N13.78 billion from N10.81 billion, thanks to better management of working capital, especially by collecting less money owed

However, the company recorded a net decrease in cash position due to higher capital expenditure of N11.48 billion and net loan repayments, resulting in a closing cash balance of N22.84 million.

As at the close of trading on Monday, the company’s stock was traded at N499, recording a 7.8 percent gain over its previous closing price of N462.90.

Guinness Nigeria is currently the 23rd most valuable stock on the NGX with a market capitalisation of N1.09 trillion, which makes up about 0.83 percent of the Nigerian Stock Exchange equity market.