Nestle Nigeria reports N176.9bn loss in H1 2024

Nestle Nigeria Plc has announced a loss of N176.9 billion in half year (H1) ended June 30, 2024 unaudited result and accounts posted on the Nigerian Exchange Limited (NGX).

The Fast-Moving Consumer Goods (FMCG) company had declared N49.98 billion loss in H1 2023.

Also, the multinational company posted loss before tax of N252.5billion in H1 2024 from N69.12billion loss before tax in H1 2023.

Despite growing revenue by 55per cent to N406.9 billion in H1 2024 from N145.2 billon in H1 2023, Net finance costs of N315.6 billion in the period under review from N129.9 billion net finance costs dragged the company’s bottom- line to loss.

The devaluation of Naira led to the revaluation of our foreign currency obligations and had an adverse impact on the profit after tax resulting in a net loss of -N176.9 billion for the first half of the year.

Further, the gross profit came at N127.3 billion versus N107.3 billion in the same period of 2023. Operating profit stood at N63.1 billion versus N60.7 billion in Jan-Jun 2023.

Commenting on the results, the CEO/MD of Nestlé Nigeria, Mr. Wassim Elhusseini, in a statement said, “The results from the first half of 2024 reflect a clear growth momentum despite continued challenges in the business environment.

“Particularly noteworthy is our second quarter performance with a 67per cent increase in sales year-on-year, underscoring the strength of our brands and the trust our consumers place in us.

“Delivering these results has involved optimizing operational efficiencies and, more importantly, the hard work and dedication of our employees who have been crucial to this success. We also appreciate the unwavering support of our business partners and shareholders.

“As we move forward in 2024, our priority remains creating value for our consumers by providing the nutritious foods and beverages they know and love.

“We are confident in our ability to navigate the current challenges to deliver long-term value to our shareholders while contributing positively to our communities. Our commitment to excellence and innovation will continue to guide us as we strive to meet and exceed the expectations of our stakeholders.”