Despite a challenging operating environment, Nestlé Nigeria PLC reported a significant 22.4% increase in sales for 2023, achieving revenues of N547.1 billion—an increase of N100.2 billion over the previous year.
Annual General Meeting Highlights
At the Annual General Meeting (AGM) held at Muson Centre in Lagos, shareholders commended the company’s performance despite losses attributed to the naira’s devaluation.
- Revenue Growth: Nestlé Nigeria’s gross profit rose by 39.4% to N217.2 billion from N155.8 billion in 2022.
- Operating Profit: Operating profit increased by 41.2%, reaching N122.7 billion, an improvement of N35.8 billion over the previous year.
- Net Loss: The naira devaluation adversely impacted the profit after tax, resulting in a loss of N79.5 billion for 2023.
Shareholder Reactions
While shareholders were disappointed by the absence of dividends for the first time in 15 years, they remained hopeful for future improvements.
Chief Timothy Adeseun remarked, “We should have been laughing but for the economic situation. For the past 63 years, Nestlé has been nourishing this nation. Thank you, Nestlé, for standing firm in this situation. We are not relenting and we are not taken aback. What has happened (losses) is not by the company’s performance but the economic performance.”
Another shareholder, Pastor Olagoke Samson, praised the company for increasing employment despite other companies reducing their workforce. Mrs. Bisi Bakare expressed a desire for shareholders to receive dividends annually and urged the board to consider bonuses for 2024.
Commenting on the results, Mr. Wassim Elhusseini, Managing Director and CEO of Nestlé Nigeria PLC, acknowledged the impact of the naira’s devaluation on financing costs and profit after tax. He expressed optimism about overcoming the current economic difficulties.
Chairman of the board, Mr. Gbenga Oyebode, emphasized the company’s efforts in backward integration and local grain purchasing. He highlighted the challenges the macroeconomic environment poses, including high inflation and difficulty sourcing foreign currency. He affirmed the company’s commitment to transparency and sustainability despite these challenges.
