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Guinness Nigeria has released its financial statements for the nine months period ended March 31, 2017. The company said its revenue rose 29 percent to N89.87 billion, compared to N69.62 billion posted in a similar period of last year.

A breakdown of Guinness Nigeria’s revenue shows that its Nigeria sales accounted for much of the increase in total revenue. Sales in Nigeria rose 26 percent to N85 billion, while export sales rose 124 percent to N4.87 billion.

Notwithstanding the strong top-line growth, Guinness Nigeria reported a loss after tax of N2.56 billion compared to an after-tax profit of N1.2 billion in a similar period of last year. The loss was driven mainly by sharp increases in cost of sales and finance costs during the period under review.

Guinness Nigeria’s revenue and loss-after tax outperformed analysts’ estimates of N87 billion and N5.2 billion, respectively, according to CardinalStone Partners, a Lagos-based investment advisory company.

Cash and cash equivalents rose sharply to N8.75 billion compared to N1.15 billion in a similar period of last year. The increase in cash was due mainly to an increased inflow of proceeds from loans and borrowings. Basic loss per share stood at N1.70 per share as against earnings per share of 57 kobo per share a year earlier.

In January 2017, Guinness Nigeria – which is a subsidiary of British drinks giant, Diageo – obtained shareholder approval to raise N40 billion via a rights issue. The company sought the share sale after it reported its first full-year loss in 2016 owing to the country’s deteriorating economic conditions last year – as demand for beverage products reduced.

Guinness Nigeria said the proceeds from the rights issue will be used to deleverage its balance sheet given its relatively high debt level, finance working capital needs, and expand operations.

The company’s stock remained flat at N60 per share as of 12.13 PM at the Lagos bourse on Thursday.