Despite prevailing economic challenges, three listed firms in the fast-moving consumer goods (FMCG) sector achieved over N500 billion in gross earnings in the fourth quarter (Q4) of last year.

The three firms – BUA Foods, Unilever and Cadbury – achieved a combined revenue of N522.9 billion. The figure represents a 104.6 per cent increase compared to N255.6 billion recorded during the same period in 2023.

Data from the Nigerian Exchange Limited (NGX) showed that BUA Foods recorded revenue of N437.4 billion, representing an increase of 114.4 per cent compared to N204 billion recorded within the same period in 2023.

The FMCG manufacturing giant also achieved a pre-tax profit of N73.4 billion, representing a 288.04 per cent increase from N18.9 billion posted in the same quarter of 2023.

Cadbury Nigeria’s unaudited result for the financial year ending December 31, 2024, showed a significant rise in revenue to N39.6 billion. The figure is higher than N21.1 billion achieved in Q4 of 2023, representing 87.3 per cent growth.

The company also achieved a pre-tax profit of N2 billion, marking a significant recovery from a pre-tax loss of N17.3 billion in the same period in the previous year.

This turnaround contributed to a 47 per cent reduction in the company’s full-year pre-tax loss, bringing it down to N14.8 billion in its 2024 full-year performance.

For Unilever Nigeria, its unaudited result for the same period showed revenue of N45.9 billion. This represents a 50.3 per cent increase when compared to N30.5 billion achieved in the 2023 financial year.

Due to the prevailing FX scarcity, inflationary pressure and other challenges impeding business growth, the profitability of firms in the sector has been affected.

For instance, at the end of 2023, many listed firms incurred significant FX losses that wiped out their shareholders’ funds pushing them into negative positions.

The losses extended into the 2024 half-year performance.With the recent stability in the FX market, some of the better are doing better and returning to profitability.

The Guardian also learnt that a good number of listed firms are streamlining their business processes to improve efficiency and reduce losses.
Cadbury began the year with a share price of N21.50 kobo and gained 35.8 per cent to close at N29.20 kobo on Tuesday. Also, Unilever gained 21.4 per cent year-to-date from N32.95 to N40.