Nestlé Nigeria Plc, a leading consumer goods company, has reported a significant loss before tax amounting to N104.03 billion in 2023, attributing it to the depreciation of the Nigerian currency.
According to the audited financial statement for 2023 filed with the Nigerian Exchange Limited on Wednesday, the company witnessed a substantial decline of 277 per cent compared to the N71.11 billion pre-tax profit it recorded in 2022.
The financial report highlighted a notable increase in revenue, surging by over N100 billion to N547 billion from N446.82 billion in the preceding year. While operating profit experienced a rise of 41.2 per cent to N123.79 billion, the company’s pre-tax and post-tax profits were adversely affected by the devaluation of the naira.
The Central Bank of Nigeria implemented measures to unify segments of the foreign exchange market in June 2023, resulting in the devaluation of the local currency. Despite efforts by the apex bank to stabilize the naira, it has yet to recover its value.
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Commenting on the financial results, Nestlé Nigeria’s Chief Executive Officer, Mr. Wassim Elhusseini, expressed gratitude to the team for their commitment, acknowledging the robust revenue growth and operating profit achieved despite the challenging economic conditions.
“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.”
He reaffirmed the company’s commitment to its core purpose of promoting the power of food through responsible local sourcing and the production of high-quality nutritious food and beverages preferred by Nigerian families.
Elhusseini emphasized Nestlé Nigeria’s dedication to optimizing operations to ensure the availability and affordability of nutritious products for consumers, anticipating a positive turnaround in the business environment.
Additionally, the company reported a foreign exchange loss of N195 billion for the financial year 2023 and did not declare dividends.
