Nestlé Nigeria Plc has posted a loss before tax (LBT) of N221.589 billion for the 2024 financial year, marking a 113% increase in losses compared to 2023.
The company attributed this significant loss to rising finance costs, primarily driven by the devaluation of the Naira.
Despite this, Nestlé experienced a strong recovery in Q4 2024, reporting a profit after tax of N19.676 billion, a sharp contrast to the N36.406 billion loss recorded in Q4 2023.
In terms of revenue, Nestlé Nigeria saw a notable increase, with full-year revenue climbing 75.25% year-on-year to N958.815 billion, largely fueled by robust domestic sales.
Export sales also showed growth, reaching N6.6 billion in 2024, compared to N1.2 billion in 2023.
However, the company’s cost of sales surged by 97.75% year-on-year to N652.460 billion, resulting in a decline in gross profit margins despite an increase in gross profit by 41.06% to N306.355 billion.
CEO Wassim Elhusseini commented on the results, acknowledging the tough economic environment but highlighting the company’s strong operating performance, with a 35.6% increase in operating profit.
He also celebrated the return to profitability in Q4 2024 as a key achievement. In line with its growth strategy, Nestlé Nigeria invested N132 billion in operations since 2023, including N72 billion in 2024, and expanded its workforce by 8%.
However, rising finance costs, up 68.23% year-on-year to N392.832 billion, were the primary factor behind the full-year loss. The company’s total debt also rose 62.48% year-on-year to N653.702 billion, increasing pressure on its financial stability.
Despite these challenges, Nestlé’s stock gained 11.4% in value as of February 26, 2025, although it remains 20.5% down year-to-date.
The company enters 2025 with a critical focus on reducing finance costs, improving liquidity, and sustaining its revenue growth to secure long-term profitability.