Nestle Nigeria returns to quarterly profit as revenue surges 95%
Nestle Nigeria Plc, a major fast-moving consumer goods company, swung to a profit after tax of N19.7 billion in the fourth quarter of last year from a loss of N36.4 billion a year earlier.
The company saw its revenue almost double to N293.5 billion from N150.5 billion, according to its latest audited financial statement released on Thursday.
It said the turnaround from loss to profitability underscored the strength of its underlying fundamentals.
The return to profit in the final quarter did not make a dent in the company’s overall performance last year as its annual loss widened to N164.5 billion from N79.4 billion.
“Since 2023, the company has invested N132 billion in new capacities and technologies, including N72 billion in 2024. Also in 2024, the company increased its workforce by eight percent. These investments are strategically aligned with its long-term goals to strengthen its market position and meet consumer demand,” Nestle said.
In March 2024, Nestlé adopted the revaluation model for its lands, buildings, plants, and machinery, transitioning from historical cost accounting. This change resulted in a net revaluation gain of N150 billion, reflected in the company’s statement of comprehensive income, financial position, and statement of changes in equity.
Wassim Elhusseini, CEO/managing director at Nestlé Nigeria, said the company remained optimistic that its ongoing initiatives to tackle economic challenges will yield positive results and support consumer demand.
“Our performance in Q4 2024 demonstrates that we are well-positioned to tackle the current challenges and deliver long-term value to our shareholders, guided by our dedication to operational efficiency and innovation. We will prioritise 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,” he said.
