Dufil Prima Foods Limited is no longer a stranger to the debt capital markets, having issued an aggregate of N158 billion in Commercial Paper (CPs) between 2016 and 2024.
The Issuer, with strong parent company support from Tolaram Group, began operations in Nigeria in 1996 via one of its current subsidiaries and owned the first noodles manufacturing plant in Nigeria and the largest in West Africa at the time.
Currently, the Dufil Prima Foods Series 8 Commercial Paper issuance, under its N50billion programme, is open and is scheduled to close on Tuesday October 15, 2024.
“Dufil Prima Foods has recorded impressive topline growth, with a 5-year revenue CAGR of 17.72 percent, to settle at N502.21billion in 2023FY on the back of its steady product innovations and efficient distribution strategies.
“The firm’s consistent capacity expansions through its acquisition of smaller competitors and aggressive marketing efforts also played a significant part in the impressive revenue performance recorded over the years. In H1:2024, Dufil Prima Foods revenue further rose to N309.83billion, reflecting sustained momentum, which is indicative of a strong outing in 2024FY,” according to Meristem research analysts.
Read also: Nigeria startups, others hunt for $200,000 in world’s largest pitch competition
The analysts said in their October research note that from 2018 to 2023, Dufil Prima Foods maintained an average cost-to-sales ratio of 81.38 percent, showcasing better cost efficiency compared to its peer, Flour Mills of Nigeria (88.52 percent).
“However, rising inflation, FX volatility, and import limitations pushed manufacturing costs higher, increasing the cost-to-sales ratio to 84.96 percent in 2023FY. Meanwhile in H1:2024, cost-to-sales printed at 84.67 percent reflecting the firm’s consistent approach in managing its costs of production.
“Additionally, in 2023FY, total operating expenses rose by 31.90 percent, driven by growth in Marketing (+28.16 percent YoY) and administration expenses (+37.74 percent). Analysing the H1:2024 numbers revealed that, operating expenses settled at N21.24billion, driven chiefly by advertisement and promotion expenses, a result of persistent inflationary pressures,” Meristem research analysts further said.
Dufil, the makers of the world’s popular brand of Instant Noodle – “Indomie”, is Nigeria’s pioneer, foremost and largest producer within the noodles segment of the consumer goods industry.
In the last few years it has added new products to its diverse portfolio of staple goods (Emperor Oil, Minimie Instant Noodles and Minimie Pasta).
The CPs Issuer continues to dominate the noodle segment by further entrenching its growth strategies centred around a backward integration model and strong distribution network, while also engaging in the production of other complimentary products such as snacks, flour, pasta, seasoning, oil and flexible packaging from strategically located factories across Nigeria and Ghana.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
