Nestlé Nigeria Plc, one of Africa’s largest food and beverage companies, faced significant financial challenges in 2023 due to the devaluation of the naira, resulting in a staggering loss of N79.5 billion for the fiscal year.
Despite achieving a remarkable sales increase of 22.4% over the previous year, with total earnings reaching N547.1 billion, a notable rise of N100.2 billion compared to 2022, the company reported substantial losses attributed to currency devaluation.
The full-year financial report for 2023, released by Nestlé yesterday, highlighted the adverse effects of the naira devaluation on the company’s foreign currency obligations, leading to increased financing costs and a subsequent decline in profit after tax.
With a reported foreign exchange loss of N195 billion, Nestlé Nigeria Plc incurred a loss before tax of N104 billion, significantly contrasting to the pretax profit of N71 billion recorded in 2022.
The financial document further disclosed that gross profit rose to N217.2 billion, reflecting a substantial 39.4% increase from N155.8 billion in the previous year. Operating profit also saw a notable uptick, reaching N122.7 billion, an increase of N35.8 billion compared to 2022.
Addressing the company’s performance, Mr. Wassim Elhusseini, Managing Director and CEO of Nestlé Nigeria PLC, thanked the team for their dedication amidst challenging economic conditions. He acknowledged the impact of the naira devaluation on financing costs but remained optimistic about overcoming the prevailing economic difficulties.
Despite the significant losses incurred, Nestlé Nigeria PLC emphasized its commitment to resilience and expressed confidence in its ability to navigate current economic challenges, emerging stronger in the process.
As of December 31, 2023, the company reported a net loss of N79 billion, contrasting sharply with the net profit of N49 billion recorded in 2022. Additionally, total liabilities exceeded total assets by N78 billion, signalling a challenging financial landscape for the company.
