Everything You need to know about Dufil Prima Foods Commercial Paper
We are excited to introduce a new investment opportunity on Assetbase: Dufil Prima Foods Limited’s Series 8 Commercial Paper, issued under their NGN50 billion programme.
This offering provides a compelling chance for investors to diversify their portfolios with an impressive 27% implied yield and a well-established issuer at the helm.
About Dufil Prima Foods Limited
Dufil Prima Foods is a household name in Nigeria and beyond, most famously known for its flagship product—Indomie Instant Noodles. The company has been a dominant force in the consumer goods industry, particularly within the noodles segment, which commands over 80% of the market share. Dufil’s operations began in Nigeria in 1996, and it has since grown to become the largest noodles manufacturer in West Africa.
Dufil's operations extend beyond noodles; the company has strategically integrated into the flour, edible oil, and cassava processing markets, ensuring control over its supply chain and reducing the impact of external economic factors. As part of the Tolaram Group, a globally respected conglomerate, Dufil benefits from its expertise and financial backing, enhancing its capacity for continued growth.
In addition to noodles, Dufil has diversified its product lines with other leading brands, such as Power Pasta and Minimie Snacks, solidifying its presence across multiple consumer categories. Power Pasta, for example, now holds a 38% market share in the branded snacks category and 27% in the sub-premium pasta segment. Minimie Snacks continues to capture the domestic snack food market.
Financial Strength
Dufil Prima Foods Limited has posted impressive financial results in recent years. The company has maintained consistent revenue and profitability growth, a testament to its solid operational strategies and market dominance.
Between 2020 and 2024, Dufil’s revenue more than doubled, growing from N225.27 billion to N501.05 billion. Operating profit increased at a steady average annual rate of 34.76%, from N23.46 billion in 2020 to N56.59 billion in 2023. This increase highlights the company's ability to manage costs and maximize operational efficiency.
Despite challenges, including fluctuating margins in 2021 and 2022, Dufil's operating margin recovered to 11.29% in 2023 from a dip to 8.94% in 2021. This rebound reflects the company’s ability to optimize its operations, enhancing profitability.
Net income also grew substantially, increasing from N5.63 billion in 2020 to N17.76 billion in 2023, showcasing the company’s solid financial management and overall profitability. These results reflect Dufil’s vital financial health, which is backed by robust revenue streams and prudent financial strategies.
allowing investors
This financial stability positions Dufil Prima Foods as a credible and attractive option for investors seeking to earn high returns through its commercial paper offering.
Dufil Prima’s Series 8 Commercial Paper: Key Investment Details
Dufil Prima Foods is offering its Series 8 Commercial Paper as part of its NGN50 billion issuance programme, allowing investors to participate in a high-yield, short-term debt instrument. Here are the key details of this investment:
- Programme Size: NGN50 billion
- Tenor: 180 days
- Implied Yield: 27%
- Discount Rate: 23.8306%
- Minimum Subscription: NGN100,000
- Maturity Date: April 15, 2025
- Currency: NGN
- Total Asset Value: NGN20 million
This commercial paper offers a highly competitive implied yield of 27%, which is significantly attractive compared to other investment options available in the Nigerian market today. Additionally, the minimum subscription of NGN100,000 makes this opportunity accessible to a broad range of investors.
Why Invest in Dufil Prima Foods?
- Market Leadership: Dufil’s dominance in the noodles market and its expansion into other consumer goods categories make it a stable and reliable company.
- Financial Strength: Dufil is a financially sound company that has experienced impressive growth in revenue, operating profit, and net income over the years.
- Strong Brand Presence: The popularity of Dufil's products like Indomie and Power Pasta ensures continued market demand.
- Attractive Returns: With an implied yield of 27%, this commercial paper offers a lucrative return on investment in a relatively short period.
- Backing from Tolaram Group: Dufil's affiliation with the Tolaram Group adds credibility and security to its operations.
How to Invest
Getting started is simple! Here’s how you can participate in this exciting investment:
- Log into your Assetbase account (or create one if you haven’t already).
- Navigate to the Dufil Prima Commercial Paper investment opportunity.
- Review the investment details and terms.
- Make your investment.
If you have any inquiries or need assistance, feel free to contact the Assetbase support team at hello@assetbase.capital. You can also join the Assetbase community on Telegram to stay updated on new investment opportunities.
Conclusion
Investing in Dufil Prima Foods’ Series 8 Commercial Paper offers a unique chance to earn substantial returns while supporting one of Nigeria’s most successful companies. With a yield of 27%, strong financial performance, and a proven track record, this is an opportunity you don’t want to miss.
Start growing your portfolio today by investing in Dufil Prima Foods Commercial Paper on Assetbase!
