Nestlé Côte d’Ivoire H1 2024 net profit up 52.3%

COTE D’IVOIRE – Nestlé Côte d’Ivoire has reported a 52.3% increase in net profit for the first half of 2024, reaching US$20 million, up from US$13.3 million a year earlier. 

The surge represents a promising turn for the company, especially following a 20.6% net profit decline in 2023 due to pressures on both local sales and exports.

The growth comes amid a challenging economic environment, with high operational costs still affecting the business.

Revenue for Nestlé Côte d’Ivoire hit 116.44 billion FCFA (US$192.5M), marking a 17.13 percent year-over-year increase compared to 99.4 billion FCFA (US$164.3M) in the same period last year. 

The increase was largely driven by strong domestic sales and sustained export demand, particularly within Sahel countries and Guinea, regions where the company has seen a steady rise in market penetration and product acceptance.

Operating profit grew 37.1 percent to 20.91 billion FCF (US$34.6M) demonstrating Nestlé’s ability to manage operational efficiency despite persistent inflationary pressures on raw materials.

Meanwhile, ordinary activities saw a 43.74 percent increase, resulting in 18.12 billion FCFA (US$30B).

This is a notable improvement from 2023, when the company struggled with high input costs that restrained its profit growth.

However, a positive turnaround in sales momentum was observed in the latter half of last year, which appears to have continued into the first half of 2024, supporting this year’s optimistic projections.

The improvement in financial performance for the first half of 2024 has raised optimism among stakeholders, as the company previously anticipated a recovery for the second half of 2023 after an improvement in quarterly earnings.

Even though the Maggi maker experienced marginal growth by the end of 2023, results largely remained stagnant when compared to 2022 figures. This year’s rebound thus represents a critical step in regaining investor confidence.

Nestlé Côte d’Ivoire’s stock has shed 3.93 percent of its value since the beginning of the year, reflecting last year’s disappointing outcomes. 

However, the current performance boost may positively influence investor sentiment, potentially driving an upward trend in share value as the company continues to report solid growth figures.

Nestlé Côte d’Ivoire’s products are well-known in the Central and West African markets, with popular brands like Golden Morn, Maggi, Ideal Milk, Nido, Milo, Nescafé, Carnation Tea Creamer, Gloria, and Cerelac.

In its forecast, the company remains cautiously optimistic about maintaining its positive trajectory in the latter half of 2024, although it acknowledges that external challenges could impact the business.

As part of its strategy, Nestlé Côte d’Ivoire plans to address these challenges by continuing to strengthen its core market presence, investing in product development, and focusing on efficient operational practices that sustain profitability in the face of rising costs.

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