Naira Devaluation Pushes Nestlé Nigeria Into N79.47bn Loss

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Nestlé Nigeria Plc on Wednesday announced N79.47 billion loss in its audited full financial year report for period ended December 31, 2023, from N48.97 billion reported in 2022.

The multinational Fast Moving Consumer Goods (FMCG) also declared N104.03 billion loss before tax in 2023 from N71.11 billion in 2022 over the devaluation of the Naira that hurt its bottom line.

The company declared a Net exchange difference on translation of foreign currency-denominated balances of about N195.07billion in 2023 from N8.45billon in 2022 to bring its finance cost to N233.5billon in 2023, representing an increase of 1005 per cent from N21.14billiion reported in  2022.

The company declared revenue increase of about 22.4per cent over the previous year, with earnings of N547.1 billion, an increase of N100.2 billion over N446.82 billion reported in  2022.

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Gross profit was N217.2 billion, representing a 39.4 per cent increase from N155.8 billion in 2022. Operating profit increased by 41.2 per cent to N 122.7 billion, an increase of N 35.8 billion over 2022.

The Managing Director and CEO of Nestlé Nigeria, Wassim Elhusseini in a statement said, “I thank every member of our team for the unwavering commitment and dedication which resulted in the strong revenue growth and operating profit vs 2022 despite the challenging economic environment.

“The devaluation of the Nigerian Naira in 2023 which led to a revaluation of our foreign currency obligations undoubtedly impacted our financing cost and consequently the profit after tax. However, we remain optimistic of our capacity to overcome the current economic difficulties and emerge stronger.”

“Looking ahead, we remain dedicated to our purpose of unlocking the power of food through responsible local sourcing and confection of the high-quality nutritious food and beverages that families across Nigeria prefer.

“We also remain steadfast in optimizing our operations to ensure the availability and accessibility of affordable and nutritious products to our consumers in anticipation of a timely turnaround in the business environment.”

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