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Two large Nigerian consumer goods firms – Nestle Nigeria and Dangote Sugar – have reported 2016 half-year revenues that exceeded analysts’ expectations due to stronger-than-expected sales volumes of their products.

Nestle Nigeria, the local subsidiary of Swiss-based food and drink giant, Nestle S.A., said revenues rose to N80.4 billion in H1’16, up 22 percent from the N65.9 billion recorded in H1’15.

The company’s revenues exceeded analysts’ estimates of N78.3 billion, according to CardinalStone Partners, a Lagos-based investment advisory firm.

Similarly, Dangote Sugar, the largest sugar company in Nigeria, said revenues rose 38 percent to N70.5 billion, compared with N51.1 billion a year ago. Dangote Sugar’s revenues also surpassed the consensus estimate of N69.1 billion compiled by CardinalStone Partners.

The rise in Dangote Sugar’s revenues was driven by the increase in the average selling price of its flagship 50kg bag to N8,102 in H1’16 from N6,959 in H1'15. Furthermore, refined sugar sales volume also increased to 434,885 tonnes in H1’16 from 367,283 tonnes in H1'15.

Despite Nestle Nigeria’s stellar revenues, the company recorded a huge decline in after-tax profit due to foreign exchange losses arising from the impact of the naira devaluation on dollar-denominated debts.

Nestle Nigeria said after-tax profit fell to N535.8 million in H1’16 compared with N8.9 billion in the corresponding period last year.

“The slump in H1'16 earnings was as a result of the 665.4 percent year-on-year rise in net foreign exchange loss to N13.1 billion on its dollar denominated loans following the 40 percent currency devaluation,” CardinalStone Partners said in a note to investors.

Unlike Nestle Nigeria, Dangote Sugar said its after-tax profit rose 17 percent year-on-year to N7.4 billion, from N6.3 billion half-year 2015.

“Gross profit margins at 19.8 percent was significantly lower than margins in H1'15 at 24.8% on account of higher production costs mainly driven by increased fuel usage and currency devaluation which impacted on raw sugar imports,” CardinalStone Partners said.