Dufil Prima Foods Limited, makers of the popular Indomie Noodles, has been able to control over 60 per cent of the noodles market share in Nigeria because of its strong customer base, extensive distribution network and promotional activities, GCR Ratings has said.
These strategies deployed by the organisation have improved its financial profile, prompting the rating agency to upgrade the national scale long-term and short-term issuer ratings of Dufil to A(NG)/A1(NG) from A-(NG)/A2 (NG), previously, with a stable outlook.
It was disclosed that the company has witnessed strong cash generation and modest debt levels, which have enhanced its credit profile.
GCR said Dufil’s supply chain stability and ongoing product development have helped it to sustain the brand’s appeal to the young demographics in Nigeria and deepen market penetration.
These strengths are partly offset by high revenue concentration, with noodles accounting for more than 74 per cent, while other business lines, including flour, pasta, snacks, packaging, and palm oil, contribute a combined 26 per cent in 2025, it stated.
“We expect noodles to remain a dominant contributor to topline, supported by plans to expand noodle production capacity in 2026. Nevertheless, the completion of the flour plant expansion in Q3 2026 is expected to modestly increase the contribution of the flour business and support margins in the snacks segment,” a part of the statement obtained by Business Post read.
In the 2025 fiscal year, Dufil grew its earnings by 30 per cent to N1.1 trillion as a result of inflation-induced price review and gradual volume recovery. Its absolute EBITDA contracted to N84.5 billion from N92.7 billion in 2024, while its EBITDA margin eased to 8 per cent from 11.4 per cent in 2024.
Also, gross debt reduced to N96.2 billion from N163.6 billion in 2024, and to N79.6 billion in the first quarter of 2026, driven by management efforts to deleverage its balance sheet from expensive borrowings.
In addition, the liquidity position has slightly improved on robust cash holding of N44.6 billion, including restricted cash of N20.8 billion as of March 2026, adequate to cover the anticipated short-term debt obligations of N47.9 billion over the next nine-month period to December 31, 2026.
Although refinancing risk remains high with short-term debt accounting for above 40 per cent of the total debt, liquidity is further supported by sizable, unutilised committed facilities of N106.5 billion, indicating the company’s wide access to funding sources.
GCR said it expects the anticipated higher capital spending of N32.5 billion over the next 21 months to December 2027, as well as projected higher dividend payments in view of robust prior year profits to be sufficiently covered by the projected robust operating cash flow.