5 Listed Foods Product Firms Record N139bn Profit

Five Nigeria’s companies listed under the food products sub-sector of the Consumer Goods sector on the Nigerian Exchange (NGX) grew their net profit to N139.444 billion in the first nine months of the year ended September 30, 2022.

The five companies are; BUA Foods Plc, Dangote Sugar Plc, NASCON Allied Industries Plc, Nestle Plc and Cadbury Nigeria Plc.

According to the information contained in the nine months financial statements of these companies, the firms’

The Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN), has sent a warning that investment in the downstream oil and gas sector may be affected with the implementation of 0.5 per cent tax on gross turnover by petroleum marketing companies as captured in the Finance Act 2020.

They further expressed fears that, by the end of this year; oil marketers may either close down operations profit after tax rose by 24.83 per cent compared to third quarter (Q3) 2021.

The net profit growth recorded by the companies is remarkable, considering economic disruptions in the global economy occasioned by the ripple effect on energy, power, and food cost, amongst others, caused by the Russia-Ukraine face-off and the global inflationary pressure on household wallets.

The growth in revenue reported by these companies was driven by higher product prices and demand from consumers in the nine months of 2022.

Cadbury Nigeria posted net profits of N2.817 billion for or borrow to pay taxes. Executive secretary of DAPPMAN, Mr. Olufemi Adewole, while speaking at the Platforms Africa Continental Forum in Lagos, on Monday, with the theme ‘‘Legislative and Business Survival in Africa: A Review of Nigeria’s 9th Parliament and Agenda for the 10th Assembly,’ said: “by the end of this year, the Finance Act 2020, mandates that petroleum marketing companies must begin to pay 0.5 per cent of their gross turnover as tax. It is actually a challenge for us and we are already engaging the first nine months of the year 2022 from N1.513 billion in 2021, accounting for an increase of 486.1 per cent. Dangote Sugar Refinery grew profit after tax by 60.1 per cent to N24.832 billion from N15.513 billion in 2021, while Nestle Nigeria recorded a net profit of N40.152 billion, up by 19.56 per cent year-on-year, as against N33.584 billion.

Similarly, NASCON Allied Industry declared profit after tax growth of 19.3 per cent from N2.416 billion in 2021 to N2.882 billion, while BUA Foods posted a net profit of N68.761 billion higher than N58.683 billion in 2021. government.”

Adewole suggested that the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), should approve a review of marketers’ margin, arguing that the Finance Act has an adverse effect on the business operations of petroleum marketers.

The executive secretary disclosed that the margins they were getting when fuel was sold at N40 per litre is the same they are still getting when it rose to N160 per litre and N200 per litre respectively.