By Ayomide Otitoju
Nestlé Nigeria’s net loss surged by 328% year-on-year to N184 billion for the first nine months of 2024, up from N43.068 billion a year earlier, according to its unaudited financial results. The increase reflects significant foreign exchange losses, which reached N285.29 billion during the period.
Despite a 67.8% revenue boost to N665.29 billion, driven by a 66.8% rise in domestic sales and an 861.7% jump in exports, the company’s performance was heavily impacted by inflationary pressures. This revenue growth was attributed to product volume gains, price adjustments, and the introduction of new products like MAGGI Signature Jollof and Milo 3-in-1.
The cost of sales increased by 94.1% to N458.978 billion, reducing gross profit margin to 31% from 40.4% last year. Operating profit rose 21% year-on-year to N110.844 billion, though operating margin fell to 16.7% amid higher marketing and administrative expenses.
Net finance costs soared 147% to N366.23 billion, driven largely by foreign exchange translation losses and increased interest expenses linked to currency devaluation and intercompany loans. Unrealized exchange losses grew significantly, reaching N251.59 billion.
However, Nestlé Nigeria recorded a tax credit of N71.11 billion from deferred tax reversals, though the period closed with a negative profit after tax of N184.27 billion.
