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Nestle, Nascon, Unilever shine in race to generate cash for operations

Nestle, Nascon, Unilever shine in race to generate cash for operations

For most companies operating in Africa’s biggest economy, 2022 was a tough year as double-digits inflation and naira devaluation ate deep into profit margins, leaving firms with little or no money to carry out their day-to-day obligations.

Despite this hurdles, Nestle Nigeria, Nascon and Unilever, Cadbury, BUA Foods and Dangote Sugar saw 48.4 percent growth in working capital to N135.3 billion in 2022 from N91.2 billion in 2021.

Here is a firm-by-firm analysis of consumer goods firms’ working capital.

Nestle Nigeria

Nestle Nigeria’s working capital stood at N72.1 billion in 2022, 758.3 percent increase from N8.4 billion in 2021.

Nestle’s total current assets rose to N290.5 billion in 2022, up 42.5 percent which is largely attributable to the most contribution from cash and short term-deposit, inventories and trade and other receivables

from N203.9 billion in 2021.

The firm’s total current liabilities climbed 11.7 percent to N218.4 billion on the back of most contributions from trade and other payables, current tax liabilities, contract liabilities as against N195.5 billion recorded in 2o21.

Nascon

Nascon’s working capital amounted to N8.7 billion in 2022, 262.5 percent from N2.4 billion in 2021.

The firm’s total current asset amounted to N39.2 billion, indicating 73 percent growth driven by most contributions from cash and cash equivalents, trade and other receivables, inventories from N22.6 billion in 2021.

Total current liabilities grew to N30.5 billion in 2022, 51 percent growth on the back of most contributions from trade and other payables, borrowings, and current tax payable from N20.2 billion in 2021.

Unilever

Unilever’s working capital amounted to N48.5 billion in 2022, 6 percent increase from N45.7 billion in 2021.

The firm’s total current assets stood at N103.9 billion from N85.9 billion, which indicates 21 percent increase driven by cash and cash equivalents, trade and other receivables, and inventories.

Unilever’s current liabilities amounted to N55.4 billion, 28 percent increase from N40.2 billion which is mainly from trade and other payables and income tax.

Read also: Transcorp Hotels Plc reports 172% jump in net profit, raises revenue to N31.4 billion

Cadbury

Cadbury’s working capital dropped 1.1 percent to N8.5 billion in 2022 from N8.6 billion in 2021.

The firm’s total current assets grew 49 percent to N45.6 billion, on the back of most contribution from cash and cash equivalents, inventories, trade and other receivables from N30.6 billion in 2021.

Cadbury’s total current liabilities rose to N37.1 billion, 68.5 percent growth on the back of most contributions from trade and other payables, borrowings and lease liabilities from N22.02 billion in the period reviewed.

BUA Foods

BUA Foods’ working capital stood at a negative N29.8 billion in 2022 from a positive N29.8 billion in 2021.

The firm’s total current asset stood at N276.7 billion in 2022, indicating 2.4 percent growth driven mainly by largest contributions from trade receivables and other assets, due from related parties, and cash and balances with banks from N270.2 billion in 2021.

BUA Foods’ total current liabilities dropped 10 percent to N306.5 billion from N340.4 billion. The most contributions to N306.5 billion total current liabilities is largely attributable to most contributions from borrowings, contract liabilities and trade and other payables.

Dangote Sugar

Dangote Sugar working capital stood at a positive N27.3 billion in 2022 from a negative working capital of N3.7 billion in 2021.

The firm’s total current asset stood at N334.7 billion in 2022 with cash and cash equivalents, trade and other receivables and inventories as the largest contributors during the period. Dangote Sugar’s total current asset recorded 55.8 percent growth from N214.8 billion in 2021.

Total current liabilities rose to N307.4 billion driven largely by trade and other payables, current tax liabilities and other liabilities. Dangote Sugar’s current liabilities recorded 40.7 percent growth from N218.5 billion in December 2021.

Nigerian Breweries

Nigerian Breweries’ working capital stood at negative of N252.3 billion from N152.4 negative working capital.

The firm’s total current assets grew 29 percent to N155.4 billion in 2022 on the back of largest contributions from inventories, trade and other receivables and cash and cash equivalents from N120.2 billion in 2021.

Nigerian Breweries’ total current liabilities stood at N407.7 billion in 2022, driven by the largest contributions from trade and other payables, loans and borrowings and current tax liabilities. The total current liabilities recorded 49.6 percent growth from N272.5 billion in 2021.