Highlights:
Jan-Jun 2024
- Revenue increased by 55% reaching N406.9 bio versus Jan-Jun 2023
- Operating profit of N63.1 bio versus N60.7 bio in Jan-Jun 2023 an increase by 3.8%
- Profit after Tax negatively impacted by the devaluation of Naira
Apr-June 2024
- Revenue increases by 67% reaching N223.4 bio versus Apr-Jun 2023
- Operating profit of N42.1 bio versus N32.1 bio in Apr-Jun 2023 an increase by 31%
- Profit after Tax negatively impacted by the devaluation of Naira
Nestlé Nigeria PLC’s sales grew by 55% in the Jan-Jun 2024 period with earnings of N406.9 billion, an increase of N145.2 billion over Jan-Jun 2023. 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. Further, 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.
For the Apr-Jun 2024 period, Nestlé Nigeria PLC’s sales grew by 67%, with earnings of N223.4 billion, an increase of N89.7 billion over Apr-Jun 2023. The gross profit came at N78.2 billion versus N55.7 billion in the same period of 2023. Operating profit stood at N42.1 billion versus N32.1 billion over Apr-Jun 2023. Further, 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 -N34.2 billion versus -N66.1 billion in Apr-Jun 2023.
Results:
| Jan - Jun 2024 | Jan - Jun 2023 | |
| N’000 | N’000 | |
| Revenue | 406,972,172 | 261,769,509 |
| Cost of Sales | (279,667,704) | (154,434,614) |
| Gross Profit | 127,304,468 | 107,334,896 |
| Marketing and Distribution expenses | (50,956,901) | (40,310,521) |
| Administrative expenses | (13,260,600) | (6,194,298) |
| (Write back)/impairment of financial assets | (9,720) | (37,418) |
| Results from operating activities | 63,077,247 | 60,792,659 |
| Finance income | 2,508,291 | 7,815,651 |
| Finance costs | (318,112,335) | (137,725,905) |
| Net finance costs | (315,604,044) | (129,910,255) |
| (Loss)/profit before income tax | (252,526,797) | (69,117,596) |
| Income tax credit/ (expense) | 75,612,401 | 19,136,251 |
| Loss for the period | (176,914,397) | (49,981,345) |
Commenting on the results, Mr. Wassim Elhusseini, the CEO/MD of Nestlé Nigeria PLC 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 secondquarter performance with a 67% 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."
The complete financial results can be accessed online at Investors - Nestlé Nigeria