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By Chinwendu Obienyi
Despite the inflationary pressures and FX challenges in Nigeria’s economy, revenue generated by BUA Foods Plc, Nigerian Breweries Plc and three others rose by N1.465 trillion in nine months of 2022, Daily Sun investigations have revealed.
Although the net finance costs of these companies impacted somewhat on their financial performance as they would have earned more, sturdy topline growth helped to ensure the companies earned impressive figures in their revenue, gross profit, profit before tax (PBT) and profit after tax (PAT) for the period under review.
The three other companies include; Dangote Sugar, Nestle Plc and International Breweries Plc.
For instance, BUA Foods Plc, a consolidated food conglomerate led by Nigerian billionaire Abdul Samad Rabiu, reported a profit of N68.8 billion at the end of the first nine months of its 2022 fiscal period, closely mirroring BUA Cement Plc’s strong performance. Its revenue grew to N289.82 billion as against N241.08 billion recorded in 2021, while its PBT and PAT respectively grew by N74.27 billion and N68.76 billion as against N63.58 billion and N58.68 billion. Its Earnings Per Share (EPS) stood at N3.82 at the end of the reporting period from N3.26 recorded in 2021.
Dangote Sugar’s revenue rose to N288.32 billion in 2022 from N195.50 billion. The company’s EPS grew to N2.04 from N1.28 while its PBT and PAT rose to N36.27 billion and N24.83 billion respectively. International Breweries’ revenue stood at N160.43 billion from N128.40 billion recorded in 2021 while its EPS dipped by 0.10 kobo in 2022 from 0.52 kobo recorded in 2021.
For its part, Nestle Plc recorded an impressive performance, adding N333.47 billion as revenue from N261.59 billion recorded in 2021. Its PBT and PAT grew to N58.39 billion and N40.15 billion while its EPS stood at N50.66 from N42.37.
Nigerian Breweries on the other hand, grew its PBT and PAT to N19.09 billion and N14.76 billion while its revenue rose to N393.45 billion from N309.28 billion in 2021 due to increase in its product prices.
This meant that the companies’ revenue grew to N1.465 trillion in nine months. Commenting on the performance of the companies, analysts at Cordros Research, said that amid a more intense environment, the companies’ financial performance was impressive despite the weak macroeconomic landscape.
According to them, there will be increased demand following year-end festivities and further price increases to mitigate rising costs and cover the adjustment in excise duties. “We expect companies to be cautious about their finance costs, consumer demand, sales amongst others. Our estimates are still under review”, they said.
