- Nigeria’s FMCG Industry Loses N38 Billion
A data collected from the Nigerian Stock Exchange (NSE) has revealed that 12 companies of Fast Moving Consumer Goods (FMCG) industry suffered a N38.02 billion decline in profit in 2018 financial year.
It was observed that some of the companies deal in import items restricted for foreign exchange by the Federal Government through the Central Bank of Nigeria in 2015.
The loss suffered by these listed companies may, therefore, be linked to the CBN’s restriction to Foreign Exchange access on their imports.
The CBN Governor, Godwin Emefiele, had said the restriction was meant to improve domestic production of the items as well as the reduction in Nigeria’s import bill in addition to ensuring the stability of the Foreign Exchange Market.
Regardless of the restriction, some of the companies witnessed profit fluctuations; the profits in 2018 were quite better than that of 2017 for some companies but worse for others that had earlier recorded gain in the previous year. Yet there are others who recorded all-round loss in both years.
In 2018, Dangote Flour Mills Plc suffered a loss of N1.16 billion naira, against an earlier profit of N15.13 billion in 2017.
In the same year, Dangote Sugar Refinery Plc, suffered a loss of N21.98 billion, below the N39.78 billion gain recorded in 2017.
Similarly, Honeywell witnessed a decline in profits from N5.60 billion in 2017 to N1.78 billion in 2018.
Nigerian Breweries’ Plc recorded a downward plunge in profit from N33 billion in 2017 to N19.4 billion in 2018.
Nascon Allied Industries Plc recorded a decline in profit from N4.42bn in 2018 from N5.34bn in 2017.
In what may be described as a reversed outcome, some companies were lucky to experience an increase in profit.
Nestle Nigeria Plc witnessed growth in profit from N33.72 billion in 2017 to N43.01 billion in 2018.
Also, Guinness Nigeria Plc recorded a rise in profit of N1.92bn in 2017 to N6.72bn in 2018.
Some companies, however, did not record any profit in either year.
Union Dicon Salt witnessed a loss of N83.77 million in 2017 and another loss of 135.19 million in 2018.
Similarly, International Breweries recorded a total loss of N3.87 billion in both years; 2017 and 2018.
The NSE listed a total of 21 FMCGs in its analysis but only the results of 12 were available at the time of filing this report.