Nigeria\u2019s biggest consumer-goods companies posted sharp profit gains in the first nine months of the year even as shoppers bought less. That divergence underscores how unevenly the country\u2019s economic recovery is being felt.<\/p>\n
Nestle Nigeria Plc\u2019s pretax profit rose 52%<\/a> to 193.9 billion naira ($146 million), while Guinness Nigeria Plc\u2019s climbed 55%<\/a> and Nigerian Breweries Plc\u2019s 33%.<\/p>\n Six of seven listed consumer companies reviewed by Nairametrics grew revenue more slowly than the 14.6% inflation rate, meaning they sold fewer goods in real terms. Five of them still raised profit by 18% or more.<\/p>\n The results show the gains from President Bola Tinubu\u2019s overhaul of the economy are reaching corporate balance sheets faster than household budgets.<\/p>\n A firmer naira and cheaper raw materials cut costs for manufacturers, but about 63% of Nigerians were living in poverty in 2025, according to the World Bank, up from 56% two years earlier.<\/p>\n The company said lower sugar and rice sales reflected \u201cstrategic and competitive market pricing initiatives,\u201d<\/em> while flour suffered from \u201csofter demand.<\/em>\u201d Rice revenue more than halved, while pasta, a cheaper staple, grew 32%.<\/p>\n Cheaper borrowing did the rest. Nestle\u2019s net finance costs shrank to 14.3 billion naira from 53.4 billion naira as the currency stabilized at about 1,329 per dollar, from 1,475 a year earlier. Guinness\u2019s finance costs fell to 5.8 billion naira from 15.3 billion naira, and Nigerian Breweries\u2019 interest expense fell to 3.2 billion naira from 37.4 billion naira.<\/p>\n Investors appear unconvinced the consumer gains will last. The NGX Consumer Goods Index slipped 1.09% in October as results rolled in, while the Industrial Goods Index, home to the cement makers, rallied 16.85%. Nestle and Nigerian Breweries each fell about 5% over the month. Guinness, the only consumer company whose sales outpaced inflation, gained 9.9%.<\/p>\n Balance sheets are nonetheless healing after the losses of the 2023\u20132024 currency crisis. Nestle\u2019s shareholders\u2019 equity rose to 116.3 billion naira from 12.9 billion naira in December. Nigerian Breweries posted a third-quarter profit of 21 billion naira, compared with a 4 billion-naira loss a year earlier. Nestle said it has now been profitable for eight straight quarters since returning to profit at the end of 2024.<\/p>\nCorporate gains, household strain<\/strong><\/h4>\n
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Cheaper finance, uneven growth<\/strong><\/h4>\n
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