Nestle Nigeria Plc Q1 2024 Shows Revenue Growth of 43.3%

Nestlé Nigeria Plc's recent report shows a revenue growth of 43.4% to N183.5 billion in the first quarter of 2024.

The Company's unaudited Q1 results for the period ended March 31, 2024, were released to the investing public on the Nigerian Exchange. Nestlé Nigeria Plc's gross profit was N49.1 billion, a decline from the previous N51.6 billion earned in the same period of 2023.

Nestlé Nigeria Plc's operating profit was N20.9 billion. The firm reported that further devaluation of the naira from January to March 2024 led to the revaluation of the Company's foreign currency obligations, which decreased profit after tax, resulting in a net loss of N142.7 billion for the quarter.

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The Company announced that, on March 16, 2024, the Board of Directors had approved a switch from the historical cost model to the revaluation method for measuring land, buildings, plant, and machinery assets.

"Accordingly, from this quarter, the Company has adopted the revaluation model for Land, Building, Plant and Machinery at fair value less accumulated depreciation and impairment losses. Going forward, the revaluation of these assets will be performed every three years through an independent certified valuer to ensure that the carrying amount of the assets does not differ materially from its fair value."

Speaking on the results, the CEO/MD of Nestlé Nigeria, Mr. Wassim Elhusseini, said, "Our first quarter sales reflect a positive growth momentum despite a challenging business environment. The broad-based growth across our portfolio is a testimony to the resilience, adaptability, and commitment that are embedded in our business.

Looking ahead into the rest of 2024, Elhusseini stated, "Our focus remains on optimising our operations to ensure the availability and accessibility of high-quality food and beverages for our loyal consumers. We will continue to invest in efforts that help build thriving communities and deliver long-term value to our stakeholders. This includes enhancing the capabilities of our people and implementing innovative marketing initiatives to drive sustainable growth and maintain our competitive edge in the market.

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"With our strong foundation and commitment to delighting our consumers, I am confident in our ability to deliver long-term value to our shareholders while creating value for our communities."

Nestle Nigeria 2023 Review

In February, Nestle Nigeria announced that its liabilities exceeded its past assets by N78.1 billion in 2023 following the naira's free fall, which affected operations.

The Company recorded a loss following its recently released audited accounts, published on Wednesday.

Nestle Nigeria's total liabilities for 2023 rose to N659.8 billion from the corresponding year, which settled at N384.8 billion in 2022 following an increase in foreign exchange losses.

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Nestle Nigeria's net exchange loss after translating foreign currency into naira was N195.1 billion, twenty-two times more than the loss posted a year earlier.

Nestle Nigeria reported a loss before tax of N104 billion. Still, a tax credit of N24.6 billion from fiscal authorities helped cushion the impact of that expense on the bottom line, cutting the loss after tax to N79.5 billion.