Nigeria’s biggest consumer goods firms paid N33.92 billion in income tax in the first three months of 2023 despite facing acute foreign exchange and rising liquidity challenges.
Data gleaned from the Nigerian Exchange Group showed consumer goods firms paid the sum of N33.92 billion as income tax in the first quarter of 2023, a three percent increase from N32.93 billion in the same period of 2022.
“Consumer goods firms are surmounting the macroeconomic headwinds to declare bumper profits, a development that allows them to pay more taxes,” Gbemisola Oni, a consumer goods firm analyst, told BuisnessDay.
The consumer goods firms surveyed include Nestle Nigeria, BUA Foods, Nigerian Breweries, Dangote Sugar, International Breweries, Cadbury Nigeria, Nascon, Champion Breweries and Unilever.
“They can do more if the government can clear hurdles such as currency devaluations, rising borrowing costs, red-hot inflation, and foreign exchange illiquidity undermined profit margins,” Oni added.
Temitope Ayeni, an analyst in the consumer goods sector said Nigerian consumer goods firms found it difficult to earn cash from their main business operations in the first quarter of 2023 due to growing inflation, declining consumer purchasing power, and the devaluation of the naira.
“As a result, these firms have increased their overall borrowings order to finance their working capital (a measure of a company’s liquidity and short-term financial health) obligations to make profits and pay taxes,” Ayeni said.
According to the analysis, the top three firms with the most income tax paid are Nestle Nigeria, BUA Foods and Nigerian Breweries which recorded N8.69 billion, N8.66 billion and N6.72 billion respectively.
Following closely are Dangote Sugar which paid N5.73 billion income tax, International Breweries (N1.81 billion), Cadbury (1.48 billion), Nascon (N0.79 billion) and Champion Breweries (N0.04 billion) in the first quarter of 2023.
Nestle Nigeria
Nestle Nigeria paid the most income tax which amounted to N8.69 billion in the first quarter of 2023, 12 percent increase from N9.87 billion in the first quarter of 2022.
The firm recorded 16 percent growth in revenue to N127.97 billion, from N110.23 billion in the comparable period.
Nestle Nigeria’s profit after tax stood at N16.21 billion in the first quarter of 2023, a 10 percent decline from N17.98 billion in the first quarter of 2022.
BUA Foods
BUA Foods paid N8.66 billion as income tax in the first quarter of 2023, a two percent drop from N8.86 billion in the first quarter of 2022.
The firm’s turnover jumped 60.2 percent to N144.32 billion from N90.07 billion in the comparable period.
BUA Foods net profit after tax grew to N40.47 billion in the first quarter of 2023, 77.2 percent increase from N22.84 billion in the first quarter of 2022.
Nigerian Breweries
Nigerian Breweries income tax paid stood at N6.72 billion in the first quarter of 2023, a six percent decline from N7.15 billion in the similar period of 2022.
The firm’s net revenue amounted to N123.31 billion, 10.5 percent decline from N137.77 billion in the comparable period.
Nigerian Breweries incurred a loss of N10.72 billion in the first quarter of 2023 from N13.61 billion in the same period of 2022.
Dangote Sugar
Dangote Sugar paid N5.73 billion income tax in the first quarter of 2023, 21 percent increase from N4.73 billion in the first quarter of 2022.
The firm’s revenue grew to N102.22 billion in the first quarter of 2023, 8.2 percent increase from N94.45 billion in the first quarter of 2022.
Dangote Sugar’s profit for the year stood at N12.8 billion, 44.3 percent increase from N8.87 billion in the period reviewed.
International Breweries
International Breweries income tax paid amounted to N1.81 billion in the first quarter of 2023, 58.8 percent increase from the N1.14 billion charge in the first quarter of 2022.
The firm’s revenue dropped 5.4 percent to N54.4 billion in the first quarter of 2023 from N57.52 billion in the first quarter of 2022.
International Breweries recorded a loss for the period which stood at N2.31 billion from a profit of N721.17 million in the comparable periods.
Cadbury Nigeria
Cadbury Nigeria paid the sum of N1.48 billion as income tax expense in the first quarter of 2023, 124 percent increase from N0.66 billion in the first quarter of 2022.
The firm’s revenue grew to N16.56 billion in the first quarter of 2023, 29.5 percent increase from N12.79 billion in the same period of 2022.
Cadbury Nigeria’s profit for the period stood at N3.45 billion in the first quarter of 2023, 124 percent increase from N1.54 billion in the first quarter of 2022.
Nascon
Nascon paid N0.79 billion income tax expense in the first quarter of 2023 from N0.18 billion in the first quarter of 2022.
The firm’s revenue stood at N16.9 billion, 57.1 percent increase from N10.76 billion in the comparable period.
Nascon recorded profit after tax which increased to N1.64 billion in the first quarter of 2023, up 324 percent from N386.37 million in the first quarter of 2022.
Read also: Minister inaugurates revenue committee to tackle multiple taxation, others
Champion Breweries
Champion Breweries paid N0.04 billion income tax in the first quarter of 2023 from N0.23 billion in the first quarter of 2022.
The firm’s revenue however dropped 19 percent to N2.59 billion from N3.19 billion in the reviewed period.
Champion Breweries recorded a loss which amounted to N96.58 million in the first quarter of 2023, compared to a profit of N554.2 million in the similar period of 2022.
Unilever
Unilever recorded no payment for income tax in the first quarter, according to the data obtained from its financial statement while N0.10 billion was recorded in the first quarter of 2022.
The firm’s revenue arrived at N24.61 billion in the first quarter 2023, 19.7 percent growth from N20.56 billion in the similar period of 2022.
The firm’s profit for the period amounted to N2.67 billion in the first quarter of 2023, a 48.3 percent increase from N1.8 billion in the first quarter of 2022.
