Due to the devaluation of the Nigerian currency, the Naira, Nestle Nigeria has reported a loss after tax of N79.5 billion for the year ended 2023, compared to a profit after tax of N 48.9 billion reported in 2022.
According to the 2023 full-year financial results submitted to the Nigerian Exchange Limited (NGX) on Wednesday, Nestle’s revenue increased by N100 billion to N547.1 billion as against the N446.8 record in 2022.
The company reported a foreign exchange loss of N195 billion, which was the major reason for the overall loss reported by the company, leading to negative shareholder funds.
Further, look into the company results showed that gross profit increased by 39.8 per cent to N217.7 billion as against N155.7 billion reported for 2022, and operating profit increased by 41.5 per cent to N123.7 billion as against N87.4 billion in 2022.
Speaking on the results, Mr Wassim Elhusseini, Managing Director and CEO of Nestlé Nigeria PLC, appreciated his team for their unwavering commitment and dedication, which resulted in strong revenue growth and operating profit versus 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 costs and consequently our profit after tax.
He, however, expressed optimism about the company’s capacity to overcome the current economic difficulties and emerge stronger.
“Looking ahead, we remain dedicated to our purpose of unlocking the power of food through responsible local sourcing and confection of the high-quality nutritious food and beverages that families across Nigeria prefer.
“We also remain steadfast in optimising our operations to ensure the availability and accessibility of affordable and nutritious products to our consumers in anticipation of a timely turnaround in the business environment,” he said.
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