Naira devaluation drags consumer firms as loss per share mount

Nigeria’s recent naira devaluation has taken a toll on consumer goods companies, with seven reporting significant losses per share, according to findings by BusinessDay.

Nine FMCG firms recorded a cumulative loss of N50.62 billion in 9M’2023 from a profit of N150.4 billion in the same period of 2022.

The firms analysed are Nestle Nigeria, Unilever Nigeria, International Breweries, Cadbury Nigeria, Nigerian Breweries, BUA Foods, Nascon Allied Industries, Dangote Sugar Refinery, and Champion Breweries.

Unilever Nigeria recorded loss per share of N0.19, Champion Brewery(-N0.99), International Breweries (-N1.06), Dangote Sugar(-N2.22), Nigerian Breweries(-N6.89), Nestle Nigeria(-N54.33) and Cadbury Nigeria(-N545.34).

However, only two firms recorded earnings per share which are BUA Foods and Nascon with N5.87 per share and N5.84 per share respectively.

Nigerian FMCG firms have seen their earnings slump this year amid rising inflation, supply chain disruptions, and weakening consumer demand.

Some of these firms suffered foreign exchange losses during the period reviewed driven largely by naira devaluation which pushed up the naira value of dollar-denominated liabilities.

Read also: Naira devaluation sinks Multichoice into $72m loss

Seven firms with losses per share

Unilever Nigeria

Unilever Nigeria recorded a loss per share of N0.19 per share in 9M’2023 from a loss per share of N0.39 per share in this same period of 2022.

The firm’s loss after tax stood at N1.09 billion in 9M’2023 from a loss after tax of N2.25 billion in the same period of 2022.

Finance cost rose to N1.03 billion in 9M’2023 from N0.33 billion in the same period of 2022.

Current assets grew to N114.39 billion from N100.88 billion while current liabilities increased to N62.52 billion from N57.91 billion.

Unilever Nigeria’s cash and cash equivalent grew to N73.8 billion in 9M’2023 from N61.55 billion in the same period of 2022.

Champion Brewery

Champion Brewery’s loss per share stood at N0.99 per share from earnings per share of N16.09 per share.

The firm’s loss after tax of N77.69 million in 9M’2023 from profit after tax of N1.26 billion in the same period of 2022.

Finance cost surged to N56.03 million in 9M’2023 from N50.5 million in the same period of 2022.

Current assets increased to N4.25 billion from N3.86 billion while current liabilities grew to N4.86 billion from N3.11 billion.

Champion Brewery’s cash and cash equivalents increased to N1.33 billion in 9M’2023 from N2.37 billion in the same period of 2022.

Read also: Banks’ recapitalisation drive linked to naira devaluation

International Breweries

International Breweries’ loss per share stood at N1.06 per share in 9M’2023 from a loss per share of N0.10 per share in the same period of 2022.

The firm’s loss after tax stood at N28.55 billion in 9M’2023 from a loss of N2.81 billion in the same period of 2022.

Finance cost grew to N20 billion in 9M’2023 from N7.11 billion in the same period of 2022.

Current assets grew to N280.58 billion from N118.49 billion while current liabilities dropped to N154.6 billion from N266.11 billion.

International Breweries’ cash and cash equivalents increased to N27.89 billion in 9M’2023 from N24.85 billion in the same period of 2022.

Dangote Sugar

Dangote Sugar’s loss per share stood at N2.22 per share in 9M’2023 from earnings per share of N2.04 per share in the same period of 2022.

Dangote Sugar recorded a loss after tax of N27.03 billion from profit after tax of N24.83 billion.

Finance cost increased to N108.72 billion in 9M’2023 from N18.97 billion in the same period of 2022.

Current assets grew to N453.38 billion from N323.03 billion while current liabilities increased to N489.3 billion from N320.26 billion.

Dangote Sugar’s cash and cash equivalents dropped to N159.21 billion in 9M’2023 from N169.75 billion in the same period of 2022.

Nigerian Breweries

Nigerian Breweries’ loss per share stood at N6.89 per share from earnings per share of N182 per share.

The firm’s loss after tax grew to N57.19 billion in 9M’2023 from N14.76 billion in the same people of 2022.

Finance cost surged to N18.89 billion in 9M’2023 from N6.19 billion in the same period of 2022. Current assets grew to N209.58 billion from N159.79 billion while current liabilities increased to N525.24 billion from N332.23 billion.

Nigerian Breweries’ cash and cash equivalents increased to N21.13 billion in 9M’2023 from N14.69 billion in the same period of 2022.

Nestle Nigeria

Nestle Nigeria recorded a loss per share of N54.33 per share from earnings per share of N50.66 per share.

The firm’s loss after tax stood at N43.07 billion in 9M’2023 from profit after tax of N40.15 billion in the same period of 2022.

Finance cost rose to N156.53 billion in 9M’2023 from N9.07 billion in the same period of 2022.

Current assets dropped to N326.27 billion from N375.44 billion while current liabilities surged to N251.47 billion from N215.02 billion.

Nestle Nigeria’s cash and cash equivalents increased to N152.27 billion in 9M’2023 from N107.13 billion in the same period of 2022.

Cadbury Nigeria

Cadbury Nigeria’s loss per share stood at N545.34 per share in 9M’2023 from an earnings per share of N149.97 per share in 9M’2022.

The firm’s loss after tax grew to N10.24 billion in 9M’2023 from profit after tax of N2.82 billion in the same period of 2022.

Finance cost increased to N22.55 billion in 9M’2023 from N0.34 billion in the same period of 2022.Current assets grew to N60.86 billion from N43.73 billion while current liabilities grew to N51.8 billion from N33.61 billion.

Cadbury Nigeria’s cash and cash equivalents increased to N41.54 billion in 9M’2023 from N23.84 billion in the same period of 2022.

Read also: Nigerian brewers face profit cuts on excise duties, naira devaluation

Firm analysis

Odd firms

BUA Foods

BUA Foods recorded earnings per share of N5.87 per share in 9M’2023 from N3.82 per share in the same period of 2022.

The firm’s profit after tax rose to N105.62 billion in 9M’2023 from a profit of N68.76 billion in the same period of 2022.

Finance cost increased to N12.2 billion in 9M’2023 from N6.4 billion in the same period of 2022.

Current assets rose to N406.25 billion from N305.82 billion while current liabilities increased to N426.04 billion from N372.71 billion.

BUA Foods cash and cash equivalents increased to N79.78 billion in 9M’2023 from N30.47 billion in the same period of 2022.

Nascon Allied Industries

Nascon Allied Industries recorded an earnings per share of N5.54 in 9M’2022 from N1.45 in the same period of 2022.

The firm’s profit after tax rose to N11.01 billion in 9M’2023 from N2.88 billion in the same period of 2022.

Finance cost increased to N0.88 billion in 9M’2023 from N0.47 billion in the same period of 2022.

Current assets rose to N62.02 billion from N38.01 billion while current liabilities grew to N45.2 billion from N33 billion.

Nascon Allied Industries’ cash and cash equivalent increased to N22.79 billion in 9M’2023 from N11.44 billion in the same period of 2022.