A recent analysis of financial statements from 20 leading Nigerian companies reveals a significant increase in their cost of sales. The year-on-year increase stands at 28.8%, attributed to sustained inflationary pressures.
This rose in costs comes amidst a challenging economic climate for businesses in Nigeria. High energy costs, foreign exchange issues, and overall inflation are combining to squeeze company profits. The report highlights examples like BUA Foods and Unilever, whose costs rose by over 60%. Only Neimeth Pharmaceuticals managed to buck the trend with a cost decline.
Economists warn that these “twin macroeconomic challenges” could negatively impact companies’ performance. PriceWaterHouseCoopers (PWC) recommends cost-optimization strategies across various areas like marketing and supply chains to mitigate the impact.
Source: Vanguard