NIGERIAN ECONOMY DEFIES LOGIC
Recently, I spent my evening with a friend who is a Finance Director in one of the leading consumer goods company in 🇳🇬 and we sat down to review the performance of different FMCG in 2021 and it was mixed stories of the good, the better and the ugly
Recently, I spent my evening with a friend who is a Finance Director in one of the leading consumer goods company in 🇳🇬 and we sat down to review the performance of different FMCG in 2021 and it was mixed stories of the good, the better and the ugly
The ugly was the input material prices which were rising due to dollar scarcity and global supply chain crisis and that left the companies with no alternative than to increase prices of goods.
This triggered inflation in Q1.
This triggered inflation in Q1.
Last year saw many consumer goods companies increase prices of goods as many as three times.
The most alarming thing was that the more the prices were increased, the more products these organizations were selling.
This was a misnomer experienced by many FMCGs.
The most alarming thing was that the more the prices were increased, the more products these organizations were selling.
This was a misnomer experienced by many FMCGs.
It got to a point for one of the multinationals that the parent body was asking brutal questions to the point of threatening to send auditors down to Nigeria to unravel the "fraud" behind these inexplicable results.
You can imagine that aberration.🤔
You can imagine that aberration.🤔
Many of the parent companies of the multinationals never expected any good result out of Nigeria last year but they were shocked at the YE results.
The good and better results were experienced by all the leading CSDs.
The good and better results were experienced by all the leading CSDs.
There was a time in the year that demand was more than supply for CSDs yet people were ready to pay cash down ahead of delivery.
Those who were selling cooking oil such as Presco Oil, Okomu oil and PZ Wilmar all had a good 2021.
Those who were selling cooking oil such as Presco Oil, Okomu oil and PZ Wilmar all had a good 2021.
One of the multinationals who used to have more credit sales than cash sales are now having much more cash sales than credit sales.
Dangote, BUA, Nestle, Airtel and MTN made a combined PAT of 788b NGN and paid 386b NGN in taxes.
Dangote, BUA, Nestle, Airtel and MTN made a combined PAT of 788b NGN and paid 386b NGN in taxes.
The irony of the Nigerian economy is that the GDP figures are not synonymous with the results obtained by many of these companies.
What could be responsible for these? I will share the concluding part of our discussion tomorrow.
I look forward to an intellectual discourse.
What could be responsible for these? I will share the concluding part of our discussion tomorrow.
I look forward to an intellectual discourse.
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