In a bid to have more liquid assets to pay off current liabilities, Nigeria’s biggest consumer goods firms have collectively reported a total cash and cash equivalents of N534bn in the first quarter of 2023.
BusinessDay analysed nine consumer goods firms: Dangote Sugar Refinery, Nestle Nigeria Plc, Unilever Nigeria Plc, International Breweries, BUA Foods, Cadbury Nigeria Plc, Nascon Allied Industries, Champion Breweries, and Nigerian Breweries.
According to BusinessDay’s analysis, these firms pooled together an aggregate cash and cash equivalent of N534.47 billion in the first quarter of 2023, up from N484.6 billion reported in the same quarter of 2022.
Cash equivalents are investment securities that are meant for short-term investing; they have high credit quality and are highly liquid.
Analysts said having ample cash reserves is crucial for consumer goods companies as it enables them to fulfill both short-term and long-term obligations to creditors.
Company Analysis
Dangote Sugar Refinery
In the first quarter of 2023, Dangote Sugar Refinery Plc reported a cash and cash equivalent of N203.01 billion, compared to N174.86 billion in the same quarter of 2022.
The company’s cash breakdown includes N3.03 million in cash at hand, N21.63 billion in bank balances, N178.9 billion in short-term deposits, and N2.39 billion in Nigeria Treasury bills.
Nestle Nigeria
During the first quarter of 2023, Nestle Nigeria Plc recorded a cash and cash equivalent of N102 billion, an increase from N95.59 billion in the same quarter of 2022.
Read also: To salvage Nigeria’s economy, fiscal discipline must accompany reforms – Edeh
Unilever Nigeria
Unilever Nigeria Plc concluded the first quarter of 2023 with a cash and cash equivalent of N78.13 billion, up from N60.84 billion in the same quarter of 2022.
The company’s cash breakdown includes N36 billion in cash at the bank and in hand, as well as N42.1 billion in fixed deposits.
Bua Foods
In the first quarter of 2023, Bua Foods Plc reported a cash and cash equivalent of N50.38 billion, compared to N27.10 billion in the same quarter of 2022.
The company’s cash breakdown includes N4.63 million in cash at hand, N51.35 billion in cash at the bank, and N970.33 million in overdraft.
Cadbury Nigeria
Cadbury Nigeria Plc recorded a cash and cash equivalent of N34.26 billion in the first quarter of 2023, an increase from N27.45 billion in the same quarter of 2022.
The company’s cash breakdown includes N15.25 billion in bank balances and N19.01 billion in call deposits.
International Breweries
International Breweries Plc experienced a decline in its cash and cash equivalent, which amounted to N29.34 billion in the first quarter of 2023, down from N62.78 billion in the same quarter of 2022.
The company’s cash breakdown includes N20.78 billion in cash at the bank and N8.53 billion in restricted cash.
Nigeria Breweries
Nigeria Breweries Plc witnessed a decline in its cash and cash equivalent, which amounted to N19.86 billion in the first quarter of 2023, down from N23 billion in the same quarter of 2022.
Nascon Allied Industries
Nascon Allied Industries Plc reported a cash and cash equivalent of N15.94 billion in the first quarter of 2023, an increase from N9.67 billion in the same quarter of 2022.
The company’s cash breakdown includes N1.96 million in cash on hand and N15.90 billion in bank balances.
Champion Breweries
Champion Breweries Plc experienced a decline in its cash and cash equivalent, which amounted to N1.56 billion in the first quarter of 2023, down from N3.27 billion in the same quarter of 2023.
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