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ABSTRACT
Performance has been seen to be an important factor in determining the sustainability of an organization. It is said to be an influencer of various sectors of the economy and has affected both positively and negatively on the nation at large. Productivity and profitability are seen as two vital part of company performance and its measure. In light of this, systematically assess company’s profitability and productivity conditions affecting company’s performance in Nigeria. A case study of Unilever Nigeria plc, Dangote sugar refinery, guiness plc, Nigerian brewery, Cadbury Nigeria plc and nestle Nigeria plc over a five-year period (2018-2022). The Quick productivity appraisal approach (QPA) is adopted in this study, the approach uses the company performance appraisal (CPA) to analyse productivity and profitability performance of a company. Its main purpose is to diagnose problem areas through establishing productivity and profitability indicators for continuous monitoring and control of the whole enterprise, The profitability condition of companies is measured its return on asset (ROA), which is taken as a proxy for profitability and productivity performance. The decline or increase in the return on asset is attributed to two major component which include the ratio of net profit to net sale and the return on asset turnover. To get a clearer picture about the ratio of net profit to net sales the following areas like the cost of goods sold, operating expenses and the interest expenses will be examined. Trend analysis is used in this study to evaluate the productivity and profitability measurement of companies Findings therefore are analysed in three different levels which are company level, industry level and the sectoral level. At company level the result showed that Nestle, Cadbury, Unilever, Dangote sugar, Nigerian brewery and Guinness showed low performance with regards to productivity and profitability performance. At the industry level it was found that food and beverage industry, house hold (food) product industry and breweries all suffered a decline in profitability and productivity performance. Also at the sectoral level there was a decline in profitability and productivity performance. Therefore companies, industries and the sector need to improve their productivity and profitability by replacing worn out machineries in production department, increasing salaries and wages and improving marketing strategies by promoting adverts and increasing sales.
