Nestlé Nigeria posts huge revenue losses before tax in 2024, bounces back in Q4
By Ralph Tathagata
For the financial year ended 31 December, 2024, Nestlé Nigeria Plc has reported a significant Loss Before Tax (LBT) of N221.589 billion. The company cited rising finance costs occasioned by the devaluation of the naira as a major cause.
However, the company bounced back in Q4 2024, posting a profit after tax of N19.676 billion, a sharp recovery from the N36.406 billion loss recorded in Q4 2023.
The consumer goods giant mentioned that one its most critical financial challenges in 2024 was the sharp rise in finance costs, which surged 68.23% YoY to N392.832 billion. The rise, according to Nestle Nigeria, was driven by foreign exchange losses from revaluation of its foreign currency obligations.
According to the audited financial statements, Nestlé’s revenue grew significantly in 2024, by 75.25% YoY to N958.815 billion, driven by strong domestic sales.
Wassim Elhusseini, Nestlé Nigeria’s CEO, while mentioning the impact of economic challenges, noted that the company’s return to profitability in Q4 2024 shows resilience, as Nestlé recorded a net profit of N19.7 billion, reversing the N36.4 billion loss in Q4 2023.
“Our 2024 results demonstrate the resilience of our brands and teams despite the tough business environment. The impressive 75.2% revenue growth and 35.6% increase in operating profit to N167.9 billion highlight our strong operating performance,” he said.
While domestic sales continued to dominate revenue, export sales increased to N6.6 billion in 2024, compared to N1.2 billion in 2023.
Nestle’s 2024 results further showed that, while revenue demonstrated robust growth, cost of sales outpaced revenue growth, rising 97.75% YoY to N652.460 billion, and reducing gross profit margins. This suggests higher input costs, currency fluctuations, and inflationary pressures impacted production expenses.
Due to increased marketing, distribution, and administrative costs, Nestle’s operating profit growth lagged at 35.62%, reaching N167.876 billion.
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