The insolent health of agribusiness in Nigeria

The insolent health of agribusiness in Nigeria

All is well for the 22 major companies in Nigeria despite the very difficult economic environment for consumers, reports This Day. MTN Nigeria Communications, Dangote Cement and 20 other companies alone posted pre-tax profits of around 1.97 trillion naira (€4.5 billion) in the first nine months of 2022. This figure is up 15% compared to the same period in 2021….

Friday, Nestle Nigeria Plc has released its results for the third quarter and first nine months of calendar year 2022. From January to the end of September, its revenue reached 333,472 million naira (€764 million) from 261,591 million (€ 599 million) over the same period the previous year. Net income stood at 40,152 million naira from 33,584 million a year earlier. In the third quarter alone, its turnover was 111,021 million naira against 90,151 million and its net profit was 12,401 million naira against 11,852 million NGN.

The benefits of Cadbury Nigeriaa jumped 86% in the third quarter to the end of September, to 2.8 billion naira from 1.5 billion in the same period in 2021. Its pre-tax profit doubled to 4 billion naira from 2.6 billion.

The after-tax profit of Nigerian Breweries climbed 80.1% to 14.7 billion naira in the first nine months from 8.6 billion naira in 2021. Its revenue rose 27.2% to 393.4 billion naira from 309, 2 billion naira in 2021.

Whether Guinness Nigeria suffered a 32% drop in its net profit to 2.7 billion naira (€6.18 million) in the first quarter of its financial year 2023, ended September 30, its turnover increased by 11% to 52.8 billion naira (nearly €121 million).

Despite the sale of its tea department in October 2021, Unilever Nigeria recorded a 30.4% increase in revenues, to 66.77 billion naira in the first 9 months of the year compared to the same period in 2021: the food segments, with its brands Blue Band, Knorr and Royco, jumped 43.2% to 30.66 billion. Our colleague from nairametrics indicates that if we reintegrate the 9.05 billion that tea activities had generated over the first 9 months of 2021, revenue growth in the food segment would be up by… 148%. However, there was a marked slowdown in the third quarter alone, with revenues down 9.8% to 20.96 billion naira against 23.25 billion over the same period in 2021.