By Benson Daniel
Nigeria’s largest fast moving consumer goods manufacturers recorded a sharp improvement in profitability in the first half of 2026, despite registering almost no growth in combined revenue, highlighting the impact of stronger cost management and improved operating efficiency.
The ten major quoted FMCG companies recorded a combined profit after tax of N601.74 billion in the first half of 2026, representing a 35 per cent increase from N445.75 billion recorded in the corresponding period of 2025.
However, their combined revenue stood at approximately N3.53 trillion, representing less than one per cent growth compared with about N3.51 trillion recorded in the same period last year.
The companies covered include Nigerian Breweries, BUA Foods, Nestlé Nigeria, Dangote Sugar Refinery, International Breweries, Guinness Nigeria, Unilever Nigeria, Cadbury Nigeria, NASCON Allied Industries and Champion Breweries.
The figures indicate that the sector’s stronger earnings were driven more by improved margins and cost efficiency than by significant expansion in sales.
Nigerian Breweries remained the largest revenue generator during the period, posting N803.68 billion, up 8.9 per cent from N738.14 billion in the first half of 2025. Its profit after tax also increased by 5.1 per cent to N92.95 billion.
BUA Foods recorded revenue of N765.12 billion, representing a 16.2 per cent decline from N912.51 billion a year earlier. Despite the drop in turnover, its profit after tax increased by 12.4 per cent to N292.27 billion from N260.10 billion.
The result made BUA Foods the largest contributor to the combined profit of the ten manufacturers, accounting for almost half of the sector’s total profit after tax during the period.
Nestlé Nigeria also delivered stronger earnings, with revenue increasing to approximately N650.7 billion from N581.12 billion. Its profit after tax rose by about 28 per cent to N64.77 billion.
Dangote Sugar recorded revenue of about N392 billion, lower than the N430.21 billion achieved in the first half of 2025. However, the company staged a significant turnaround at the bottom line, moving from a N24.27 billion loss after tax to a N41.50 billion profit.
International Breweries generated approximately N342 billion in revenue, broadly unchanged from N340.99 billion in the previous year. Its profit after tax, however, declined to N38.31 billion from N41.29 billion.
Guinness Nigeria recorded revenue of about N265 billion, compared with N237 billion in the previous year. The company also moved from a marginal loss to a N14.90 billion profit after tax.
Unilever Nigeria recorded one of the strongest revenue performances, with turnover rising to approximately N119 billion from N98.1 billion. Its profit after tax increased to N15.59 billion from about N14.41 billion.
The overall performance comes despite continued pressure from high production costs, energy expenses, logistics charges, inflation and foreign exchange volatility.
For many manufacturers, maintaining profitability in such an environment has required tighter control of operating expenses, improved pricing strategies, reduced financing costs and greater focus on efficiency.
The figures also suggest that revenue growth alone does not fully capture the performance of Nigeria’s manufacturing companies. While consumer demand remains constrained by pressure on household incomes, businesses that have successfully controlled costs have been able to protect and improve their margins.
The trend could become increasingly important in the second half of the year as manufacturers continue to balance rising operating expenses with weak consumer purchasing power.
For investors, the stronger earnings performance could improve sentiment towards the FMCG sector, particularly companies demonstrating the ability to generate higher profits without relying heavily on revenue expansion.
However, sustained profitability will depend on how manufacturers manage energy, raw material, distribution and financing costs while maintaining sufficient production volumes.
The first half results therefore point to a manufacturing sector that is increasingly relying on operational efficiency and margin protection to navigate a challenging business environment.
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