NIGERIA – Nestlé Nigeria Plc, a Nigeria-based food and beverage specialty company, has disclosed a net loss of US$48.7 million at the end of its financial year ending December 2023, attributed to the depreciation of the naira.
The audited financial statement filed with the Nigerian Exchange Limited on Wednesday revealed a 277 percent decrease compared to the US$44.18 million pretax profit posted in 2022.
Despite this challenging performance, the company reported a 22.4 percent increase in turnover to 547 billion naira (US$336 million) and a 42 percent rise in operating profit to 123.7 billion naira ($80 million).
However, the devaluation of the naira negatively impacted pretax and post-tax profits, as the Central Bank of Nigeria harmonized segments of the foreign exchange market in June 2023.
Nestlé Nigeria’s CEO, Wassim Elhusseini said, “I thank every member of our team for the unwavering commitment and dedication, which resulted in strong revenue growth and operating profit vs 2022 despite the challenging economic environment.”
Despite the economic challenges, Elhusseini expressed optimism about overcoming difficulties, stating, “However, we remain optimistic of our capacity to overcome the current economic difficulties and emerge stronger.”
Elhusseini emphasized the company’s commitment to its purpose of providing high-quality nutritious food and beverages to Nigerian families through responsible local sourcing.
He reiterated Nestlé’s dedication to optimizing operations for the availability and accessibility of affordable and nutritious products, anticipating a turnaround in the business environment.
To address significant forex volatility and cost inflation, Nestlé Nigeria implemented robust margin and cost management initiatives. The company invested N61 billion in expanding its production lines at factories in Agbara, Sagamu, and Abaji.
In a strategic move to outsmart competitors, Nestlé launched five new products, including Maggi Soya Chunks, Milio-3-in-1, Cerelac Bag-n-Box, Milo Enersnakz, and ventured into plant-based nutrition with NIDO Soya.
Nestlé Nigeria, the local subsidiary of Nestle S.A., entered Nigeria in 1961 and has been a powerhouse in the consumer goods sector, boasting formidable brands such as Milo, Nescafe, Golden Morn, and Maggi.
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