Manufacturing Sector Begins Recovery as Revenue and Profits Soar

At the backdrop of perceived daunting macroeconomic challenges, major operators in the manufacturing sector of the Nigerian economy may have started witnessing a major turnaround.

Following a challenging 2023-2024 characterised by Naira depreciation and steep inflation some of the country’s major fast moving consumer goods (FMCG) companies and other manufacturing concerns, seem set on a recovery path, showing either a return to profitability or a sharp narrowing of losses.

The indication of recovery is seen in the first quarter 2025 (Q1’25) financial results of eight of the major manufacturers listed on the Nigerian Exchange (NGX).
Cadbury Nigeria Plc, Nestlé Nigeria Plc, Nigerian Breweries Plc, BUA Foods Plc, Unilever Nigeria Plc, Dangote Sugar Plc, Champion Breweries Plc, and International Breweries Plc recorded a combined revenue of N1.6 trillion in Q1’25, a 51.9% increase from Q1’24. They also recorded a net profit of N218.35 billion, an 180% increase from Q1’24. This performance suggests the companies have adjusted to the challenging economic environment, driven largely by macroeconomic improvements such as a stable exchange rate environment and easing inflation.
According to them, the improved performance points to a more stable outlook for the consumer goods sector, although persistent inflation, interest rate hikes, and FX volatility remain major risks.

BUA Foods reported revenue of N442.1 billion in Q1’25, a 24 percent year-on-year increase compared with N125.3 billion in the previous year, attributed mainly to expanded sales in its flour and rice divisions.

The company’s profit after tax also surged 124 percent to N125.3 billion from N55.9 billion in Q1 2024, despite rising distribution and administrative costs.

Projecting for the rest of the year, Managing Director of BUA Foods, Ayodele Abioye, said: “With a stabilising economy and growing emphasis on food security, we are confident that our unique and integrated business model, strong financial position, and robust execution will continue to enhance our strategic growth and create lasting value for all stakeholders throughout 2025.

Source: allafrica.com

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