Nigerian consumer goods firms adjust to shrinking wallets and naira depreciation

Four of the 21 consumer goods companies listed on the Nigerian Exchange Limited (NGX) have released their full-year 2023 audited financial statements, with three reporting losses for the year. Preliminary unaudited reports from the other 17 companies suggest that eight additional companies are primed to report losses once their accounts are audited. This indicates that 12 consumer goods companies listed on the NGX are currently operating at a loss. 

A common thread among these financial reports is the impact of the weakening naira, particularly affecting companies with foreign exchange obligations. 

Among the loss-reporting companies is Nestlé Nigeria PLC (Nestlé), ranking as the fifth largest consumer good by total asset size listed on NGX. Nestlé, like its counterparts in the consumer goods sector, attributes its loss to the depreciation of the naira, which experienced a 56.8% devaluation in 2023. Notably, Nestlé’s revenue increased by 23% year-on-year in the reporting period despite