Money owed by consumers to FMCG firms jumps to N273bn

The total amount of goods sold to consumers on credit by five fast-moving consumer goods firms rose by 49 percent within a year, according to data compiled by BusinessDay.

The latest financial statements of BUA Foods Plc, Unilever Nigeria Plc, Cadbury Nigeria Plc, Guinness Nigeria Plc and International Breweries Plc show that their combined trade and other receivables increased to N272.7 billion last year from N182.9 billion in 2022.

Trade receivables is the amount a company has billed to its customer for goods or services for which payment has not been made.

Further analysis of the statements revealed that BUA Foods recorded the highest of 67.6 percent, followed by Unilever with 47.2 percent. Cadbury had 40.3 percent and Guinness Nigeria had 30.7 percent.

International Breweries recorded a 33.4 percent drop in trade and other receivables during the period.

Analysis of data from individual firms

BUA Foods

BUA Foods’ trade and other receivables rose to N199.9 billion in 2023 from N119.3 billion in 2022.

The firm’s trade and other receivables comprise other receivables worth N192.2 billion, prepayments worth N5.94 billion and trade debtors of N1.78 billion.

Unilever

Unilever’s trade and other receivables grew to N31.29 billion in 2023 from N21.25 billion in 2022.

The firm’s trade and other receivables comprise of advances and prepayment of N14.53 billion, net trade receivables of N6.76 billion, due from related parties of N6 billion, deposit for imports of N1.64 billion, other receivables of N1.63 billion and cash with registrar worth N419.5 million.

Guinness

Guinness’s trade and other receivables grew to N19.29 billion in 2023 from N14.76 billion in 2022.

The firm’s trade and other receivables comprise trade receivables of N14.47 billion, current other receivables at N3.32 billion, advance payment to suppliers at N1.01 billion, other receivables at N437.7 million and amount due from related parties at N48.79 million.

International Breweries

International Breweries’ trade and other receivables increased to N14.98 billion in 2023 from N22.49 billion in 2022.

The firm did not have a breakdown of what its trade and other receivables entail in its financial statement.

Cadbury

Cadbury Nigeria’s trade and other receivables grew to N7.24 billion in 2023 from N5.16 billion in 2022.

The firm’s trade and other receivables comprise trade receivables worth N5.06 billion, other receivables of N1.16 billion, due from related parties at N616.4 million and withholding tax receivable at N395.4 million.