Nigerian consumer goods firms spend N1.55tn to earn N2.09tn revenue in H1 2026
Nigeria’s six leading listed consumer goods companies spent ₦1.55 trillion to generate ₦2.09 trillion in revenue during the first half of 2026, a 3.9% drop from ₦2.18 trillion in H1 2025. Identifiable operating costs accounted for 74.1% of revenue, while the weighted average gross margin rose to 39.9% from 35% a year earlier, driven by lower raw sugar input costs at BUA Foods and Dangote Sugar.
The revenue decline was concentrated in the two sugar-focused firms, which together lost ₦185.7 billion compared with H1 2025. BUA Foods’ revenue fell 16.2% to ₦765.1 billion, achieving the lowest cost‑to‑revenue ratio of 59.1%. Dangote Sugar’s revenue slipped 8.9% to ₦391.9 billion, but its cost ratio remained the highest at 91.7%. Excluding these, Nestlé, Cadbury, NASCON and Unilever grew combined revenue by 13.3%, led by Unilever’s 22.2% jump.
Distribution, administrative, financing and energy expenses remain major pressures. Cadbury’s selling and distribution costs more than doubled to ₦10.8 billion, worsening its ratio to 85.6%. Heavily indebted Dangote Sugar carried a ₦554.9 billion net debt, generating ₦47.5 billion in finance costs, while net‑cash positions at NASCON and Unilever yielded finance income.
With operating costs still consuming nearly three‑quarters of revenue, will manufacturers prioritize cutting distribution and financing expenses, or accept lower margins as the new normal?