Nestlé Nigeria Grows Revenue By 43% To N183.5bn In Q1

Nestlé Nigeria Plc has reported revenue growth of 43.4 per cent to N183.5 billion in the first quarter of 2024.
The company’s unaudited Q1 results for the period ended March 31, 2024 was released to the investing public on the Nigerian Exchange. Gross profit was N49.1 billion from N51.6 billion in the same period of 2023.

Operating profit stood at N20.9 billion. Further devaluation of the naira in January to March 2024 led to the revaluation of the Company foreign currency obligations which had an adverse impact on the profit after tax resulting in a net loss of N142.7 billion for the quarter.

The company stated that its Board of Directors approved a change in the measurement of Land, Building, Plant and Machinery from the historical cost model to the revaluation model with effect from March 16, 2024.

“Accordingly, from this quarter, the company has adopted the revaluation model for Land, Building, Plant and Machinery at fair value less accumulated depreciation and impairment losses. Going forward, the revaluation of these assets will be performed every three years through an independent certified valuer to ensure that the carrying amount of the assets does not differ materially from its fair value.”

Speaking on the results, the CEO/MD of Nestlé Nigeria, Mr. Wassim Elhusseini said, “our first quarter sales reflect a positive growth momentum despite a challenging business environment. The broad-based growth across our portfolio is a testimony to the resilience, adaptability, and commitment that are embedded in our business.

Looking ahead into the rest of 2024, Elhusseini stated that “our focus remains on optimising our operations to ensure the availability and accessibility of high-quality food and beverages for our loyal consumers. We will continue to invest in efforts that help build thriving communities and deliver long-term value to our stakeholders. This includes enhancing the capabilities of our people and implementing innovative marketing initiatives to drive sustainable growth and maintain our competitive edge in the market.

“With our strong foundation and commitment to delighting our consumers, I am confident in our ability to deliver long-term value to our shareholders while creating value for our communities.”