Browsing by Author "Adeolu Ayodeji ADELODUN"

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    Production Planning and Profitability of Selected Fast-Moving Consumer Goods Companies in Nigeria
    (Lead City University, 2022-12) Adeolu Ayodeji ADELODUN
    In past years, the Fast-Moving Consumer Goods (FMCG) companies in Nigeria have been facing declining Profitability due to macroeconomic changes, reducing consumer purchasing power, and Central Bank of Nigeria (CBN) policies. Review of extant FMCG annual reports shows growing operational concerns despite marginal revenue improvement. In the light of this, this study examines the effect of production planning on the profitability of selected FMCG companies in Nigeria from 2011 to 2020. Correlational research design and ex post facto method were employed using secondary data obtained from the annual reports of the firms on the Nigerian Stock Exchange website. Three (3) theories namely: Theory of Constraint, Theory of Production and Pecking Order were used with the theory of constraint underpinning the study. The population of the study consists of 21 firms, and the sample size of the study comprised of 8 firms selected using purposive technique. The robust random effect regression analysis proved that inventory turnover (P = 0.047*, Coeff = 0.013, T-Stat = 2.30) and workforce productivity (P = 0.026*, Coeff = 0.056, T-Stat = 2.72) have a positive and significant effect on the profitability of the selected FMCGs. In contrast, capital structure has a negative and significant effect (P= 0.000*, Coeff = -0.003, T-Stat = -6.43) on the profitability of the selected FMCGs. The study concluded that inventory turnover and workforce productivity improve the profitability of listed FMCGs in Nigeria, also capital structure has negatively influence on the profitability of the selected FMCGs in Nigeria. The study recommended that management of FMCGs companies in Nigeria should focus on strategic inventory management, improve the working environment, and structure their capital need with focus on equity to improve profitability. Keywords: Capital structure, Fast Moving Consumer Goods, Financial performance, Inventory management, Production planning, Workforce productivity, Word Count: 278