10 most Indebted FMCG companies by total borrowings in 2025

Nigeria’s consumer goods companies closed the 2025 financial year with sharply contrasting balance sheet positions, reflecting how operators navigated inflationary pressures, high borrowing costs, foreign exchange volatility, and weak consumer purchasing power.

An analysis of audited FY 2025 financial statements of major Fast-Moving Consumer Goods (FMCG) companies listed on the Nigerian Exchange shows that Dangote Sugar Refinery Plc, Nestlé Nigeria Plc, and BUA Foods Plc recorded the largest debt positions in the sector.

The review also indicates that debt size alone does not fully determine financial strength, as liquidity levels, shareholder equity, and leverage ratios remain critical in assessing sustainability.

What the data is saying

The 2025 financial data present a mixed picture—strong revenue potential on one hand, but significant leverage pressure on the other.

While some companies moved aggressively to cut borrowings and rebuild liquidity, others maintained large debt books to support expansion projects, inventory financing, and working capital requirements.

• The three most indebted FMCG companies accounted for the bulk of borrowings among listed operators in 2025, while some peers ended the year in stronger net cash positions.
• The figures suggest that large FMCG players continue to rely on debt financing for expansion, inventory management, and working capital requirements.
• Beyond the top three, several companies made notable progress in deleveraging during the year, while others maintained relatively modest borrowings.

Top 10 most Indebted FMCG companies by Total Debt – FY 2025 

Vitafoam Nigeria Plc – N9.30 billion

Vitafoam Nigeria Plc reported total debt of N9.30 billion in 2025, representing a 33.50% YoY decline, underscoring a deliberate strategy to reduce leverage and strengthen its balance sheet.

While the company operates with one of the lowest debt levels among listed FMCG players, its broader financial metrics provide even more insight into its stability.

• Debt ratio: 0.14
• Debt-to-equity ratio: 1.84x
• Debt-to-capital ratio: 0.65
• Net debt: N286 million

One of Vitafoam’s most compelling strengths lies in its liquidity position, with cash and cash equivalents of N9.02 billion. The company’s net debt stands at just N286 million, effectively placing it on the brink of a net cash position.

Cadbury Nigeria Plc – N22.81billion

Cadbury Nigeria Plc reported total debt of N22.81 billion in 2025, representing a 30.49% decline year-on-year, an indication that the company is actively deleveraging its balance sheet in response to industry and macroeconomic pressures.

However, while the absolute debt level is relatively modest within the FMCG space, its leverage profile tells a more complex story.

• Debt ratio: 0.30
• Debt-to-equity ratio: 5.62x
• Debt-to-capital ratio: 0.85
• Net debt: N7.79 billion

On the liquidity front, Cadbury Nigeria maintains a net debt position of N7.79 billion, after accounting for N15.02 billion in cash and cash equivalents.

Honeywell Flour Mills Plc – N26.97 billion 

Honeywell Flour Mills Plc posted total debt of N26.97 billion in 2025, unchanged year-on-year, suggesting a moderate leverage and stable debt structure in an operating environment where many peers are actively deleveraging.

• Debt ratio: 0.16
• Debt-to-equity ratio: 4.47x
• Debt-to-capital ratio: 0.82
• Net debt: N21.70 billion

Honeywell Flour Mills presents a relatively modest debt size, but a capital structure that remains debt-heavy when viewed through equity and funding composition.

Guinness Nigeria Plc– N43.92 billion 

Guinness Nigeria Plc reported total borrowings of N43.92 billion in 2025, reflecting a 9.43% year-on-year increase, signaling a gradual build-up in debt exposure amid operating pressures in the consumer goods space.

A closer look at its leverage and liquidity metrics, however, provides a more nuanced picture.

• Debt ratio: 0.18
• Debt-to-equity ratio: 5.66x
• Debt-to-capital ratio: 0.85
• Net debt: N36.95 billion

The company recorded a stable yet moderately leveraged position, indicating a more leveraged operating stance in a high-rate environment.

Champion Breweries Plc – N59.03 billion

Champion Breweries Plc reported total debt of N59.03 billion in 2025, marking a significant shift in its capital structure compared to the prior year, when debt was negligible.

This sharp build-up places the company among the more leveraged players in the mid-tier FMCG segment.

• Debt ratio: 0.72 (relatively high leverage)
• Debt-to-equity ratio: 6.30x
• Debt-to-capital ratio: 0.86
• Net debt: N11.68 billion

Champion Breweries’ debt ratio of 0.72 indicates that 72% of its total assets are financed by debt, pointing to a highly leveraged balance sheet. This level of asset funding through borrowings places it closer to highly geared firms like Dangote Sugar, rather than more conservative peers.

Nigerian Breweries Plc – N59.71 billion

The brewer recorded one of the strongest deleveraging in the sector. Debt fell sharply 64.68% to N59.71 billion from the 2024 level, with the total debt at N169.05 billion; while cash exceeded obligations, resulting in a net cash position.

• Debt ratio: 0.06
• Debt-to-equity ratio: 1.90x
• Debt-to-capital ratio: 0.66
• Net debt: -N1.43 billion (net cash position)

The company has significantly strengthened its liquidity profile, transitioning into a net cash position—a positive signal for investors.

PZ Cussons Nigeria Plc – N71.27 billion

PZ Cussons Nigeria Plc’s debt declined by 19.98% to N71.27 billion, from N89.06 billion in 2024.

However, beyond the improvement in debt levels, the company’s underlying financial structure reveals significant balance sheet stress, driven largely by its negative equity position of N17.34 billion

• Debt ratio: 0.42
• Debt-to-equity ratio: -9.74x
• Debt-to-capital ratio: 1.11
• Net debt: N30.61 billion

This implies that the company is technically leveraged beyond its capital base, indicating potential balance sheet stress.

BUA Foods Plc – N469.38 billion 

BUA Foods Plc posted borrowings of N469.38 billion, lower by 4.82% from N493.14 billion in the prior year.

BUA Foods Plc maintained a sizeable debt position and exhibited a strong equity base of N672.90 billion and significant liquidity, leaving net debt at a more manageable N189.0 billion

• Debt ratio: 0.25
• Debt-to-equity ratio: 2.76x
• Debt-to-capital ratio: 0.73
• Net debt: N189.0 billion

The company’s large cash position significantly cushions its debt exposure.

While highly indebted in absolute terms, BUA Foods shows better debt sustainability and liquidity coverage than its peers.

Nestlé Nigeria Plc – N476.04 billion

Nestlé Nigeria Plc reduced debt by 27.18% to N476.0 billion, from N653.70 billion in 2024, yet remains structurally overleveraged.

Despite the reduction, the company’s equity base of N12.9 billion is significantly eroded, creating an unusually high leverage ratio, thereby pushing debt-to-equity to 65.64x.

• Debt ratio: 0.56
• Debt-to-equity ratio: 65.64x (extremely high)
• Debt-to-capital ratio: 0.98
• Net debt: N440.62 billion

This means Nestlé’s capital structure is fragile, and its debt burden remains disproportionate to equity, posing solvency risks if earnings weaken.

Dangote Sugar Refinery Plc – N725.31 billion

Dangote Sugar ranked as the most indebted company with total borrowings of N725.31 billion, up 1.09% from N717.51 billion in 2024.

Its net debt stood at N672.73 billion, suggesting that only a small portion of liabilities is offset by available cash reserves.

• Debt ratio: 0.75
• Debt-to-equity ratio: 7.49x
• Debt-to-capital ratio: 0.88
• Net debt: N672.73 billion

The company remains heavily leveraged, with debt continuing to play a major role in financing operations and expansion. For a large-scale sugar producer, this may be strategic, but it raises sensitivity to interest costs and execution risk.

This implies that the firm is highly exposed to financing costs, especially in a high-interest rate environment.

More Insight 

Notably, several listed consumer goods firms ended FY 2025 with more cash than debt, placing them in relatively stronger liquidity positions.

• International Breweries Plc: N155.24 billion
• Unilever Nigeria Plc: N108.58 billion
• NASCON Allied Industries: N41.57 billion
• Nigerian Breweries Plc: N1.43 billion
• N Nig. Flour Mills Plc: N880 million

Net cash companies typically enjoy lower finance costs, stronger resilience during downturns, and greater room for dividends or expansion.

What you should know

Consumer goods companies have faced sustained pressure over the past two years as inflation raised production costs, interest rates increased financing expenses, and currency depreciation inflated the cost of imported raw materials.

• Many firms responded by restructuring debt and reducing exposure to expensive borrowings.
• Others relied on loans to sustain operations, fund inventory purchases, or finance expansion plans.
• Companies with stronger cash positions were better able to absorb economic shocks.
• Weak equity positions made leverage ratios appear more stretched for some operators.

This explains why debt levels varied widely across the sector despite similar macroeconomic conditions.

For investors, the key issues to monitor in 2026 will include refinancing costs, consumer demand recovery, exchange rate stability, and dividend capacity. While Dangote Sugar remained the most indebted listed FMCG company in 2025, firms with stronger liquidity and lower leverage may hold a competitive advantage in the year ahead.