In response to the tough operating environment, consumer goods firms recorded a 26 percent rise in operating expenses in the first quarter of 2023, BusinessDay analysis has shown.
A BusinessDay analysis of Nigerian Breweries, Nestle Nigeria, Unilever Nigeria, International Breweries, BUA Foods, Nascon, Dangote Sugar, Cadbury and Champion Breweries show the cumulative operating expense of N108.79 billion in the first quarter of 2023 from N86.32 billion in the first quarter of 2022.
The top three firms which recorded the highest operating expenses compared to their peers are Nigerian Breweries, Nestle Nigeria and Unilever Nigeria with a record of N41.92 billion, N23 billion and N15.16 billion respectively.
Nigerian Breweries
Nigerian Breweries’ operating expenses climbed 4.7 percent to N41.92 billion in the first quarter of 2023 from N40.04 billion in the first quarter of 2022.
The firm spent the sum of N33.7 billion as selling and distribution expenses in the first quarter of 2023, 3.4 percent increase from N32.59 billion in the first quarter of 2022.
Administrative expenses amounted to N8.22 billion, up 10.3 percent from N7.45 billion in the comparable period.
Nestle Nigeria
Nestle Nigeria recorded 36.6 percent growth in operating expenses which amounted to N23 billion in the first quarter of 2023 from N16.84 billion in the first quarter of 2022.
The firm spent the sum of N19.34 billion on marketing and distribution which indicates 36 percent growth from N14.22 billion in the comparable periods.
Nestle Nigeria’s administrative expenses amounted to N3.66 billion in the first quarter of 2023, 39.7 percent growth from N2.62 billion in the first quarter of 2022.
Unilever Nigeria
Unilever Nigeria’s operating expenses stood at N15.16 billion in the first quarter of 2023, a 35 percent increase from N11.23 billion in the first quarter of 2022.
Selling and distribution expenses stood at N10.6 billion, 47.8 percent increase from N7.17 billion in the reviewed period.
The firm’s marketing and administrative expenses amounted to N4.56 billion, 12.3 percent increase from N4.06 billion in the comparable period.
International Breweries
International Breweries’ operating expenses which entails administrative, marketing and promotion cost stood at N9.95 billion in the first quarter of 2023, 9.3 percent increase from N9.1 billion in the similar period of 2022.
The firm incurred other expenses of N2.57 billion, 37.5 percent decline from N4.11 billion in the reviewed period.
BUA Foods
BUA Foods’ operating expenses stood at N8.91 billion in the first quarter of 2023, up 300 percent from N2.23 billion in the first quarter of 2022.
Administrative expenses amounted to N2.62 billion, 72.4 percent increase from N1.52 billion in the comparable period.
BUA Foods’ selling and distribution expenses rose to N6.29 billion, 788 percent increase from N708.34 million in the reviewed period.
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Nascon
Nascon spent the sum of N4.48 billion as operating expenses in the first quarter of 2023, a 69.7 percent increase from N2.64 billion in the first quarter of 2022.
The firm’s distribution cost amounted to N3.47 billion in the first quarter of 2023, up 79.8 percent from N1.93 billion in the first quarter of 2022.
Nascon’s administrative expenses stood at N1.01 billion, 41.9 percent increase from N711.5 million in the reviewed period.
Dangote Sugar
Dangote Sugar’s operating expenses increased to N2.93 billion in the first quarter of 2023, up 17.2 percent from N2.5 billion in the first quarter of 2022.
Selling and distribution expenses amounted to N174.56 million, 33.1 percent increase from N260.81 million in the reviewed period.
The firm’s administrative expenses to N2.75 billion, 22.8 percent increase from N2.24 billion in the comparable period.
Cadbury Nigeria
Cadbury Nigeria’s operating expenses stood at N1.82 billion in the first quarter of 2023, 37.9 percent increase from N1.32 billion in the same period of 2022.
The firm’s selling and distribution expenses stood at N1.56 billion, up 54.5 percent from N1.01 billion in the reviewed period.
Cadbury Nigeria’s administrative expenses amounted to N260 million, 16.6 percent increase from N311.66 million in the comparable periods.
Champion Breweries
Champion Breweries operating expenses amounted to N0.62 billion in the forest quarter of 2023, a 47.6 percent increase from N0.42 billion in the first quarter of 2022.
Selling and distribution expenses grew to N289.11 million, 29 percent increase from N224.2 million in the reviewed period.
Champion Breweries administrative expenses recorded 66 percent growth to N329.74 million in the first quarter of 2023 from N198.5 million in the same period of 2022.
