Nestle Nigeria loses N104bn in 2023, worries about going concern status

By Ralph Tathagata

The year ended 2023 has witnessed a whopping loss before tax of N104 billion for global consumer goods giant, Nestle Nigeria. The loss is compared to a profit before tax of N71 billion same period in 2022.

Also, according to the 2023 financial statement of the company published on the NGX on Wednesday, 28 February 2024, Nestle Nigeria reported a foreign exchange loss of N195 billion which it attributed to the major reason for the overall loss.

Nestle Nigeria reported that it had obtained about $362.25 million in foreign currency loans from its parent company, Nestle South Africa.

What’s more, the forex losses, which is now a negative N78 billion from N30.2 billion in 2022, means the company’s liabilities now exceed its assets.

While acknowledging the dire effect of the losses on its going concern status, Nestle Nigeria also noted that it will not be able to pay dividends to shareholders.

However, the company’s net cash flow remained positive at N49 billion despite the negative shareholder funds.

To ensure a sterling and vibrant operation in Nigeria, Nestle will probably raise capital over N100 billion to maintain its going concern status.


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