Nestlé Nigeria Plc has reported revenue of ₦958.8 billion for the financial year 2024, a 75% year-on-year increase, despite economic downturn and the naira depreciation.
According to its audited financial statement released on the Nigerian Exchange (NGX), the company had strong operating performance, with key financial indicators revealing growth.
Highlights
- Export sales jumped from ₦1.2 billion in 2023 to ₦6.6 billion in 2024.
- Operating profit rose 6% to ₦167.9 billion from ₦123.8 billion.
- Total assets surged 5% to ₦858.6 billion from ₦581.7 billion.
- Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 45.2%, reaching ₦135.4 billion.
Currency devaluation and high finance costs pushed the company into a full-year loss of ₦14.6 billion. However, Q4 2024 marked a turnaround, with a net profit of ₦19.7 billion, a good recovery from the ₦36.4 billion loss in Q4 2023.
Wassim Elhusseini, Nestlé Nigeria’s CEO, noted that the revenue growth and operational success were a result of brand resilience, strong fundamentals, and strategic initiatives.
He acknowledged the impact of foreign currency revaluation on net profit and equity, but was positive about the company’s ability to scale through economic challenges and sustain consumer demand.
“Our 2024 results demonstrate the resilience of our brands and teams and underscore our strong fundamentals in a challenging business environment. The impressive 75.2% revenue growth for the year, as well as the 35.6% improvement of our operating profit to ₦167.9 billion, reflect the robustness of our operating performance.
Despite recording a 75% increase in revenue, the company ended with an after-tax loss of ₦164.5 billion, with the CEO pointing to the devaluation of naira and high finance costs as the underlying cause.
He stated: “Our net profit and equity were impacted by high finance costs associated with the reevaluation of the company’s foreign currency obligations, due to an unprecedented devaluation of the naira,” Elhusseini stated.
Nonetheless, Nestlé Nigeria is leveraging cost-cutting measures and strategic adjustments to sustain profitability and drive long-term growth.
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