Posted 1/7/2024, 1:02:23 AM
Naira Woes Cost Top Consumer Goods Companies Nearly 500 Billion Naira
- Major consumer goods companies like Cadbury, Guinness, and Nestle lost N472.35 billion to naira depreciation in the first 9 months of 2023
- Naira depreciation led to higher production costs for companies that rely on imported raw materials
- Companies with foreign currency debts faced higher interest costs due to the weaker naira
- Inflation and naira depreciation are expected to continue weighing on consumer goods companies' profitability
- Companies are engaging in restructuring, acquisitions, and expansions to try to sustain profitability amid the challenging conditions