Nigeria’s high energy, logistics and operating costs are putting pressure on manufacturers, but the half-year results of Dangote Cement, Nestlé Nigeria and BUA Foods show that some of the country’s biggest listed manufacturers were able to maintain strong profitability through the first six months of 2026.
Dangote Cement recorded ₦2.514 trillion in revenue for the six months ended June 30, 2026. Its cost of sales stood at ₦924.3 billion, while administrative and selling expenses amounted to ₦540.5 billion. The company posted an operating profit of ₦1.06 trillion and profit after tax of ₦638.5 billion.
The figures gave Dangote Cement a gross profit margin of about 63.2%, an operating profit margin of 42.1% and a net profit margin of 25.4%. Fuel and power consumed during the period amounted to ₦384.5 billion, compared with ₦387.2 billion in the corresponding period of 2025.
BUA Foods recorded ₦765.1 billion in revenue in the first half of 2026, compared with ₦912.5 billion in the corresponding period of 2025. Despite the decline in revenue, profit after tax rose to ₦292.7 billion, representing a 12% increase over the ₦260.1 billion recorded in the corresponding period of 2025. Operating profit increased to ₦320.5 billion during the period.
Based on these figures, BUA Foods recorded a gross profit margin of approximately 47.5%, an operating profit margin of 41.9% and a net profit margin of 38.2%.
Commenting on the results, the Managing Director of BUA Foods Plc, Engr. Ayodele Abioye, said:
“BUA Foods demonstrated strong resilience in the first half of 2026, navigating a challenging operating environment with discipline and agility. Our performance reflects effective cost management, ongoing improvements in supply chain execution, and a more optimized product portfolio mix. Despite a 16% decline in revenue, we expanded margins and delivered double-digit growth across key financial indicators. This outcome underscores the strength of our business model, the quality of execution across our operations, and our unwavering commitment to operational excellence.
Looking ahead to the second half of the year, our focus is on converting our operational gains into volume growth while sustaining the profitability improvements achieved in H1. We remain committed to disciplined execution, enhancing market share, and delivering sustainable long-term value to our shareholders.”
Nestlé Nigeria, on the other hand, recorded ₦650.8 billion in revenue in the first half of 2026. Cost of sales stood at ₦392.2 billion, while operating expenses were about ₦117.2 billion. The company reported an operating profit of ₦141.4 billion and profit after tax of ₦64.8 billion.
Nestlé Nigeria recorded a gross profit margin of about 39.7%, an operating profit margin of 21.7% and a net profit margin of 10.0%.
The results show different approaches to protecting profitability amid rising business costs. While Dangote Cement maintained strong margins alongside relatively stable fuel and power costs, Nestlé improved its profitability and BUA Foods increased profit despite a decline in revenue.
For investors, the results suggest that controlling costs and protecting margins remain critical as manufacturers navigate energy, logistics and other operating pressures.
The next test will be whether the companies can sustain and grow profit margins through the second half of 2026 if energy and operating costs remain elevated.