Nestlé Nigeria Reports N79.47bn Loss

an increase of 22.4 per cent from N446.82 billion reported in 2022.

Gross profit stood at N217.2 billion in 2023, representing a 39.4per cent increase from N155.8 billion in 2022 as operating profit increased by 41.2per cent to N 122.7 billion from N35.8 billion reported in 2022.

The foreign exchange losses also resulted in a wipeout of the company’s shareholder funds which is now a negative N78 billion from N30.2 billion a year earlier.

This means the company’s liabilities now exceed its assets as Nestle will also not be able to pay 2023 financial year dividend to shareholders based on the status of its shareholder’s funds.

Meanwhile, the net cash flow of the company remained positive at N49 billion despite the negative shareholder funds.

Nestle also stated that during the year it invested N61 billion in the expansion of its lines at the three factories located in Agbara, Sagamu, and Abaji.

They also invested in the enhancement of our distribution center (DC) operations at Sagamu, Ogun State. Commenting over the result and accounts, the Managing Director and CEO of Nestlé Nigeria, Mr. 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.”