The distribution cost for leading consumer goods companies quoted on the Nigerian Exchange Limited rose to N166.43 billion in the second quarter ended June 30, 2023, on the back of fuel subsidy removal and rising energy cost.
According to her, “industries such as manufacturing, agriculture and distribution will experience higher operating costs due to increased fuel expenses. This in turn may result in higher production costs and reduced profit margins for businesses.” Details in the financial reports of the companies for the period showed that the decline in the distribution cost of GSK , which is already shutting down its operation in Nigeria, and Unilever Nigeria Plc , that recently sold its flagship product – Blue Band Margarine – lessened the impact.
On the other hand, Unilever Nigeria Plc recorded 64.5 percent decline in its distribution cost to N2.49 billion from N7.03 billion in Q2’22; GSK Plc recorded 36.9 percent decline in to N593 million from N1.099 billion in Q2’22, while Fidson Healthcare Plc posted a 34.1 percent decline to N1.01 billion from N1.53 billion in the corresponding period in 2022.