FMCG SECTOR | HALF-YEAR RESULTS
Guinness, NB, Dangote Sugar lead deleveraging drive as seven consumer goods giants cut H1 finance costs by 14.4%
By Staff Reporter
Major consumer goods companies are beginning to reap the benefits of aggressive debt reduction, as combined finance costs of seven listed FMCG giants fell by N21bn to N124.94bn in the first half of 2026.
The figure represents a 14.4 per cent decline from the N145.94bn recorded in the corresponding period of 2025, signalling a gradual recovery from the foreign exchange pressures triggered by the naira devaluation.
The companies covered in the analysis are Nestlé Nigeria, NASCON Allied Industries, Nigerian Breweries, Dangote Sugar Refinery, Guinness Nigeria, International Breweries and Champion Breweries.
Cadbury Nigeria was excluded because it did not provide a gross finance income and expense breakdown in its financial statements.
Debt reduction drives savings
Analysts said the decline was largely driven by aggressive deleveraging, stronger operating cash flows and improved financial performance.
The Senior Analyst, FMCG, at CardinalStone Securities, Oluwakemi Abiodun, said the varying performance of the companies reflected different approaches to managing debt.
According to her, Dangote Sugar Refinery, Nigerian Breweries and Guinness Nigeria have been particularly focused on reducing leverage.
Investment Research Analyst, Nathanael Disu, said improved macroeconomic conditions had strengthened the companies’ financial buffers and enabled them to repay debt accumulated during the period of severe foreign exchange pressures.
Guinness leads as finance costs plunge 64.9%
Guinness Nigeria recorded the largest percentage reduction, cutting finance costs by 64.9 per cent from N12.44bn to N4.36bn.
Its net finance cost also fell by 74.2 per cent to N3.18bn, helping the brewer post a 60.9 per cent increase in pre-tax profit.
NASCON Allied Industries recorded the second-largest decline, with finance costs dropping 58.5 per cent to N171.6m.
With only N38.6m in non-current borrowings and N46.05bn in cash and cash equivalents, NASCON maintained a strong cash position and moved into net finance income territory.
Nigerian Breweries clears N59.7bn debt
Nigerian Breweries cut finance costs by 50.4 per cent to N10.16bn, from N20.51bn.
The company’s deleveraging drive was particularly significant, with interest-bearing loans and borrowings falling from N59.71bn to zero within six months.
Its balance sheet also improved sharply, with retained earnings rising to N13.65bn from an accumulated deficit of N72.17bn at the end of 2025.
Dangote Sugar posts N14.5bn savings
Dangote Sugar Refinery recorded a 22.4 per cent decline in finance costs to N50.42bn from N64.97bn.
Although its percentage reduction was lower than those of the brewers, the company achieved the largest naira reduction of N14.55bn among the seven firms.
The improvement, combined with stronger margins, helped Dangote Sugar swing from a N22.11bn pre-tax loss in H1 2025 to a N44.09bn profit in H1 2026.
Nestlé, IB, Champion buck trend
Not all companies benefited from the sector-wide decline.
Nestlé Nigeria’s finance costs increased by 10.9 per cent to N47.86bn. However, its finance income surged to N33.26bn from N1.12bn, largely due to foreign exchange translation gains, pushing net finance costs down by 65.3 per cent to N14.60bn.
International Breweries recorded an 80.6 per cent increase in finance costs to N7.05bn, while finance income rose to N11.96bn.
Champion Breweries recorded the sharpest increase in the sector, with group finance costs soaring more than eightfold from N543.7m to N4.91bn.
The increase followed the consolidation of a new subsidiary, which added N3.49bn in goodwill and resulted in the recognition of a non-controlling interest.
Deleveraging reshapes FMCG outlook
The half-year figures point to a significant shift in the financial fortunes of Nigeria’s consumer goods sector.
While companies such as Guinness Nigeria, Nigerian Breweries and Dangote Sugar are using stronger cash flows to reduce debt, others continue to face elevated financing costs.
Analysts said sustained deleveraging, stronger earnings and improved management of foreign exchange exposure will remain critical to the sector’s ability to protect profits and sustain growth in the coming quarters.
