Guinness Nigeria Plc incurred a massive N49 billion in exchange rate losses according to information revealed in its full-year results for the period ending June 2023.
Compared to N7.15 in earnings per share a year earlier, the stated loss per share was N8.29 kobo.
The year’s revenue was N229.2 billion, up 10.9% year over year.
Gross profit was N78.1 billion +7.5% YoY
Operating profit N23.3 billion -2.3%
Net finance cost N45.4 billion +20040.1%
Loss after tax N18.1 billion -216.1%
Loans and advances N63.7 billion vs N31.3 billion YoY
Cash generated from operations N57.3 billion vs N38.9 billion YoY
Cash in bank N92.1 billion vs N69.1 billion
The dividend declared is N15.6 billion compared to N1 billion YoY
DPS is N7.14 per share +1452%YoY
The company lost N18.1 billion as a result of the currency depreciation, which was its first full-year loss since 2020, when Covid-19 severely damaged the company’s finances.
The company declared an operating profit of N23.5 billion after accounting for the unusual forex loss of N49 billion.
Therefore, Guinness would have recorded significant profits even without the FX penalty.
Guinness also disclosed an unrealized gain of N5.5 billion from foreign currency holdings due to exchange rates.
In comparison to N9.4 billion as of December 2022, Guinness has a related party dollar loan of $22.5 million, making the naira equivalent presently N17.9 billion.
At the conclusion of the year, the corporation also had loans relating to letters of credit totaling around $33.8 million, 18.8 million euros, and 2.9 million pounds.
Forex-denominated trade and other payables total $48.1 million, EUR 245, and GBP 5.5 million.
Despite the losses, Guinness still announced sizable payouts because they will not immediately affect cash holdings.
