The top 5 largest food companies in Nigeria based on revenue in 2023 

Despite increased operating expenses and increased finance costs, the rise in food inflation has led to increased revenue for Nigerian food companies.  

For context, the 5 food companies with the highest revenue in Nigeria have generated over N2.7 trillion in revenue between January and September 2023, representing a 31% year-on-year growth from the same period last year.  

Nairametrics has tracked the financial performance of the top revenue generating food companies in Nigeria this year and compiled a list. 

  1. Honeywell Flour Mills Plc – N113.4 billion 

Coming in at fifth place is Honeywell Flour Mills Plc, one of Nigeria’s largest flour milling companies with an installed flour milling capacity of 12,000 metric tonnes per day. 

Between January and September 2023, the company generated N113.4 billion in revenue, representing a 3% year-on-year growth from the corresponding period in 2022.  

Honeywell Flour Mills Plc, a subsidiary of Flour Mills of Nigeria operates from its factories in Apapa, Ikeja, and Sagamu. However, in July 2022, production was halted at the Ikeja factory.  

  1. Dangote Sugar Refinery Plc – N309.7 billion

Dangote sugar

Subsidiary of Dangote Group, Dangote Sugar Refinery is the second most valuable company owned by Aliko Dangote. For the nine months ending September 2023, the group generated a revenue of N309.7 billion, representing a 7% year-on-year growth from the same period in 2022. 

96% of the group’s revenue came from the sale of 50kg bags, while the group also made N8.5 billion from the retail sale of sugar, and N1.96 billion from the sale of molasses. The company generated 44% of its revenue (N136.4 billion) from Lagos, N133.5 billion from the entire North, N28.3 billion from the West, and N11.5 billion from the East.  

  1. Nestle Nigeria Plc – N396.6 billion

Nestle

Nestle Nigeria has generated a revenue of N396.6 billion within the nine months ending September 2023, representing an 18.9% year-on-year growth from the corresponding period in 2022.  

Despite the company’s impressive revenue performance, the company recorded a pre-tax loss of N56.7 billion which is linked to a spike in its finance costs.  

The company generated 99.9% of its revenue from its domestic operation while it generated N488 million from its exports.  

  1. BUA Foods – N524.4 billion
BUA Foods
BUA Foods HQ

The largest food company by market capitalization, BUA Foods recorded a revenue of N524.4 billion in nine months ending September 2023, representing an 80.95% year-on-year growth from the corresponding period in 2022.  

The group’s revenues were generated from the sales of sugar (non-fortified and fortified), wheat bran, bakery flour, head rice, and molasses. Fortified sugar was the highest source of revenue for the company with N245.5 billion, followed by bakery flour with N135.6 billion.  

Raw material was the highest source of expenditure for the group with N310.1 billion, while N14.4 billion was expended on energy between January and September 2023.  

  1. Flour Mills of Nigeria Plc – N1.39 trillion

Flour Mills

Nigeria’s largest food company in terms of asset, Flour Mills of Nigeria has generated the highest amount of revenue between January and September 2023. The group generated N1.39 trillion between the period, marking a 31.2% year-on-year growth from the same period in 2022.  

Bulk of the company’s revenue came from its food business which generated N929.9 billion. Its food business comprises its flour milling, and pasta and noodles production division.

The group presently owns the Nigerian Eagle Flour Mills Ltd, Honeywell Flour Mills Plc, Northern Nigeria Flour Mills Plc, Golden Sugar Company, Golden Fertilizer Company, and Crestview Towers Limited.  

What you should know  

The major drivers of increased revenue for the food companies are increased product prices as majority of the economic headwinds were transmitted to consumers.

However, despite increased revenue, there was an observable drop in profit margin for the different companies.  

For example, between January and September 2023, Flour Mills of Nigeria recorded a profit margin of 0.79%, representing a 101 bps drop from the corresponding period in 2022.  For BUA Foods, the group’s profit margin recorded a 360 bps drop in profit margin to 20.1% from last year’s 23.7%.  


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