Dangote Cement on List of Top Companies Hit Hard by Cash Scarcity, as 6 Report N46.52bn Loss in 3 Months

• Six Nigerian companies experienced a decline in revenue in the first three months of 2023
• The companies attributed the drop in revenue to several challenges, including the CBN's naira redesign policy
• The CBN announced the withdrawal of the old 1000, 500, and 200 naira notes in February, which led to an acute cash scarcity

Nigerian companies across various sectors experienced significant struggles during the first quarter of 2023 due to a massive drop in sales caused by cash scarcity.

As per the audited financial reports submitted to the Nigerian Stock Exchange, six companies experienced a collective decrease in revenue amounting to N46.52 billion during the first quarter of 2023.

The companies affected include Dangote Cement Plc, UAC of Nigeria Plc (UACN), Nigerian Breweries Plc, and Notore Chemical Industries Plc.

Others include GlaxoSmithKline Consumer Nigeria Plc and ABC Transport Plc.

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The aforementioned companies reported N559.14 billion in revenue in Q1 2023, compared to N605.66 billion reported in the same period in 2022.

How the companies performed

For instance, Dangote Cement Plc, one of Africa's largest cement manufacturers, recorded a 1.62% decline in revenue, just as Nigerian Breweries Plc, a leading brewery company, recorded a 10.47% drop in revenue.

Similarly, UAC of Nigeria Plc (UACN), a conglomerate investing in food and beverages, real estate, and paints, reported a revenue decline of 11.20%.

Notore Chemical Industries Plc, which specialises in producing fertilisers, reported a 75.26% drop in revenue.

Furthermore, GlaxoSmithKline Consumer Nigeria Plc reported a 45.37% decline in revenue, while ABC Transport Plc, a major transport company, recorded a 22.46% drop in revenue.

Breakdown of the companies' revenue

• Dangote Cement Plc: 2023 revenue - N406.7 billion, 2022 revenue - N413.4 billion
• UAC of Nigeria Plc: 2023 revenue - N24.6 billion, 2022 revenue - N27.7 billion
• Nigerian Breweries Plc: 2023 revenue - N123.31 billion, 2022 revenue - N137.77 billion
• Notore Chemical Industries Plc: 2023 revenue - N4.10 billion, 2022 revenue - N16.56 billion
• GlaxoSmithKline Consumer Nigeria Plc: 2023 revenue - N4.02 billion, 2022 revenue - N7.36 billion
• ABC Transport Plc: 2023 revenue - N1.45 billion, 2022 revenue - N1.87 billion

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List of Nigeria's most valuable banks after Q1, 2023

In another report, the Nigerian banks with the highest market capitalisation for the first quarter of 2023 have been unveiled.

Zenith Bank and GT Bank retained their positions as the most highly valued commercial banks in the Nigerian market, which they held at the beginning of the year.

However, First Bank experienced a decrease in its market value during the same period.

Source: Legit.ng