By Ayomide Otitoju
Nestlé Nigeria Plc has made an early repayment of $20 million in inter-group foreign exchange debt, underscoring its financial discipline amid ongoing economic challenges.
In a statement filed with the Nigerian Exchange on Thursday, the company announced that the repayment was made ahead of schedule as it continues to navigate the impacts of currency devaluation, inflation, and rising finance costs.
Commenting on the development, Managing Director and Chief Executive Officer Wassim Elhusseini stated, “Our ability to make an early payment of $20 million on our forex obligations highlights the strength of our financial discipline and commitment to reducing exposure to currency volatility. Despite economic headwinds, we continue to invest strategically and optimize operations to ensure long-term value creation for our stakeholders.”
Nestlé Nigeria had previously reported a significant turnaround in its fourth-quarter 2024 results, posting a profit after tax of N19.7 billion, a sharp contrast to the N36.4 billion loss recorded in the same period of 2023. The company attributed this recovery to a 95% increase in total revenue, which reached N293.5 billion, alongside a 77.1% growth in operating profit to N57 billion for the quarter.
For the full year 2024, Nestlé Nigeria’s revenue surged by 75.2% to N958.8 billion, while operating profit climbed by 35.6% to N167.9 billion. However, the company reported a total comprehensive loss of N14.6 billion, largely due to high finance costs stemming from the depreciation of the naira.
Since 2023, Nestlé Nigeria has invested N132 billion in operational expansion, with N72 billion allocated in 2024 alone to boost capacity and efficiency. Additionally, the company increased its workforce by 8% to support growth across its portfolio.
The early forex debt repayment is expected to strengthen the company’s financial position by reducing interest expenses and forex-related risks.
Looking ahead, Elhusseini reaffirmed Nestlé Nigeria’s commitment to operational efficiency and strategic investments. “Our investments in capacity expansion, workforce development, and product innovation will position us for sustained growth. We remain focused on navigating economic challenges while continuing to deliver value to our consumers and shareholders,” he stated.
Meanwhile, the Chairman of Nestlé Nigeria Plc, Gbenga Oyebode, noted that the foreign exchange loans from its parent company, Nestlé S.A. Switzerland, were essential to sustaining operations.
