The growing adoption of digital technologies has redefined competitive advantage and financial performance in the global business landscape, yet evidence from Nigeria’s food and beverage sector remains limited and fragmented. This study investigates the influence of digital transformation on the financial performance of three leading food and beverage firms including Nestle Nigeria Plc, Cadbury Nigeria Plc, and Guinness Nigeria Plc covering a twelve-year period (2013–2024). The objective was to determine how digital transformation expenditures, specifically digital infrastructure adoption, digital technology investments and digital epayment adoption proxied by IT service costs, consulting and subscription expenses, and telephone charges respectively, affect key performance indicators: Return on Assets (ROA), Revenue, and Net Profit Margin (NPM). A quantitative, longitudinal research design was adopted, utilizing audited annual financial statements to construct panel data. Descriptive statistics, correlation analysis, and multivariate regression were applied, with diagnostic tests confirming robustness of the models. Findings reveal that digital transformation significantly influences financial performance across the firms, though with variations in scope and magnitude. For ROA, significant effects were evident in Nestle and Cadbury, but not in Guinness, suggesting differential alignment of digital tools with asset efficiency. Revenue was positively and consistently influenced across all firms, particularly through IT service costs and telephone-related investments. In terms of NPM, consulting and subscription expenses and telephone charges were significant across all firms, while IT service costs mattered more in Nestle and Cadbury. The study recommends that firms sustain targeted digital investments that directly support operational efficiency, prioritize advanced IT infrastructure and analytics to drive revenue growth, and deepen customer-oriented digital platforms to enhance profitability. Keywords: Digital Transformation, Financial Performance, Digital payments, Food and Beverage Firms, Return on Assets, Revenue, Net Profit Margin.
Ezeilo et al. (Wed,) studied this question.