Nestlé Nigeria reports 75% revenue growth in 2024 amid rising costs
NIGERIA – Nestlé Nigeria Plc has announced a 75% increase in revenue to N958.81 billion (US$638.67m) for the financial year ended December 31, 2024, compared to N547.12 billion (US$364.4M) in 2023.
The strong revenue growth was driven by increased demand for its products, but rising input costs and economic challenges in Nigeria weighed on profit margins.
The company’s operating profit rose 35.6% to N167.9 billion (US$111.8M) from N123.8 billion (US$82.5M) in the previous year.
However, the cost of sales surged by 97.74% to N652.46 billion (US$434.6M) from N329.95 billion (US$219.8M), reflecting the impact of Nigeria’s high inflation on production expenses. Companies across the country continue to grapple with increased borrowing costs and currency devaluation, both of which have strained profitability.
Nestlé Nigeria’s net finance costs increased significantly due to high interest rates on borrowings and foreign exchange losses. While finance income declined to US$2.24M from US$3.79M, finance costs soared to US$261.67M from US$155.54M in 2023.
“Our 2024 results demonstrate the resilience of our brands and teams and underscore our strong fundamentals in a challenging business environment,” said Wassim Elhusseini, CEO/Managing Director of Nestlé Nigeria PLC.
“Our net profit and equity were impacted by high finance costs associated with the revaluation of the company’s foreign currency obligations, due to an unprecedented devaluation of the Naira.”
Despite these challenges, Nestlé Nigeria achieved a strong turnaround in the fourth quarter of 2024. The company reported a net profit after tax of US$13.12M, recovering from a loss of US$24.19M in Q4 2023.
Operating profit in the quarter also surged by 77.1% to US$37.82M from US$21.4M.
To strengthen its operations, Nestlé Nigeria has invested US$87.74M in new capacities and technologies since 2023, including US$47.86M in 2024. Additionally, the company increased its workforce by 8% as part of its expansion strategy.
In March 2024, Nestlé Nigeria transitioned from historical cost accounting to the revaluation model for its lands, buildings, plants, and machinery, aligning with long-term growth objectives.
Looking ahead, Elhusseini expressed optimism about 2025, stating, “We remain optimistic that our ongoing initiatives to tackle economic challenges will yield positive results and support consumer demand. We will prioritize initiatives that create shared value for all stakeholders, as they contribute to our long-term sustainability while we provide nutritious foods and beverages to meet and exceed their expectations.”
Nestle Ghana launches NIDO
Meanwhile, Nestlé Ghana Limited has officially launched redesigned packaging for its NIDO product, incorporating eco-friendly materials to minimize plastic waste and enhance recyclability.
The new packaging aligns with Nestlé’s commitment to sustainability and environmental responsibility. The simplified material composition aims to improve recycling efficiency while maintaining the product’s nutritional integrity.
The updated design also prominently displays key nutritional information, such as iron content, ensuring transparency for consumers and caregivers.
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