Nestle Nigeria posts wider loss of N165bn on naira weakness
Nestle Nigeria, a major fast-moving consumer goods company, has reported an annual loss for the second time in 2024 largely on high finance costs driven by the currency devaluation.
The multinational’s after-tax loss widened to N164.5 billion from N79.4 billion in the previous year, according to its latest audited financial statement released on Thursday. It recorded a revenue growth of 75.2% to N958.8 billion, while operating profit increased by 35.6% to N167.9 billion.
It attributed the net loss to the revaluation of foreign currency obligations owed to the parent company and due for payment from 2027 onward. “However, to minimise further exposure, the management has opted for an early repayment of the loan which commenced with the payment of $20 million in 2024.”
With total liabilities exceeding assets by N92.29 billion, Nestle declared no dividend for the second straight year.
The company said the results indicated “a robust operational performance in a challenging market”.
“Our 2024 results demonstrate the resilience of our brands and teams and underscore our strong fundamentals in a challenging business environment,” the statement said.
Nestle said it had implemented “robust margin and cost management initiatives” to address forex volatility and inflation.
The company expanded its market operations into 73 new towns, added 14,000 outlets, and recruited 14 new distributors, even as it invested N71 billion in building future capacities, according to the earnings report.
