Nestlé Nigeria Plc experienced a 107% increase in net loss for 2024, reaching N164.595 billion. While revenue surged by 75% to N958.814 billion, soaring costs of sales hampered profitability. CEO Wassim Elhusseini affirmed brand resilience amidst economic challenges, and the company reported a net profit in Q4 2024 after substantial investments to enhance market position.
Nestlé Nigeria Plc reported a substantial increase in net loss for 2024, which rose by 107% to N164.595 billion, compared to N79.473 billion in 2023. This loss is attributed to ongoing pressures within the consumer sector, particularly linked to inflationary impacts on input costs. Despite a notable revenue increase of 75% year on year to N958.814 billion, escalating costs of sales, which surged by 97.74%, considerably affected the company’s profit margins.
The rise in costs reflects the persistent challenges within Nigeria’s economic landscape, characterized by heightened borrowing rates and significant inflation. Nestlé Nigeria’s net finance costs also rose sharply due to elevated interest rates, which led to a pre-tax loss of N221.588 billion, a 113% increase from the previous year’s loss.
In light of the challenging financial results, Mr. Wassim Elhusseini, CEO of Nestlé Nigeria PLC, remarked on the resilience of the company’s brands. He noted, “Our 2024 results demonstrate the resilience of our brands and teams and underscore our strong fundamentals in a challenging business environment.”
In the fourth quarter of 2024, Nestlé Nigeria reported a profit of N19.7 billion, recovering from a loss of N36.4 billion in the same quarter of 2023. This turn in fortunes is indicative of the company’s strong operational performance, as operating profit in the quarter increased by 77.1%, further enhancing investor confidence.
Since 2023, Nestlé Nigeria has made strategic investments amounting to N132 billion, including N72 billion in 2024, aimed at bolstering market position and meeting consumer demand. The company also increased its workforce by 8% during the same period. In an additional financial maneuver, it adopted the revaluation model for its assets, leading to a net revaluation gain of N150 billion in 2024.
Nestlé Nigeria remains committed to combining its operational success with social responsibility, evidenced by various initiatives supporting women and youth development. The company aims to be a positive force in society while responding to the prevailing economic challenges.
In summary, Nestlé Nigeria faced significant financial challenges in 2024, exemplified by a record net loss despite substantial revenue growth. The company’s strategic investments and positive adjustments in the fourth quarter signal potential resilience and ongoing commitment to market leadership. As it navigates these challenges, Nestlé Nigeria continues its dedication to corporate responsibility and community engagement, reinforcing its position amidst economic uncertainties.
Original Source: dmarketforces.com
