Nestle Nigeria blames naira devaluation for negative net assets 

Nestle Nigeria, a major food and beverage company, said its liabilities surpassed assets at the end of last year because of the revaluation of its foreign currency obligations occasioned by naira devaluation.

The company’s board said this while addressing shareholders at the extraordinary general meeting held on Wednesday, according to a statement.

“The board concluded that despite a very difficult operating environment, the fundamentals of the company remain strong,” it said. “Going forward, the board will continue to monitor the developments on the policy front and support the measures to address the negative net assets of the company.”

Nestle Nigeria posted a loss before tax of N104.02 billion in 2023 compared with a profit of N71.11 billion in the previous year. Its net finance costs jumped to N227.81 billion from N16.36 billion owing largely to the devaluation of the naira. 

Its cash and cash equivalents increased by 42 percent to N167.8 billion.