Nestlé Nigeria Plc, a prominent player in the consumer goods industry, has reported a substantial loss before tax of N104.03 billion for the fiscal year 2023, citing the devaluation of the Nigerian currency as a key factor.
In its audited financial statement for 2023 filed with the Nigerian Exchange Limited, the company disclosed a stark decline of 277 per cent compared to the N71.11 billion pre-tax profit recorded in 2022. Despite a notable increase in revenue, soaring by over N100 billion to N547 billion from N446.82 billion in the previous year, Nestlé Nigeria’s pre-tax and post-tax profits were adversely impacted by the depreciation of the naira.
The Central Bank of Nigeria’s actions to unify segments of the foreign exchange market in June 2023 led to the devaluation of the local currency. Although efforts were made to stabilize the naira, its value is yet to recover fully.
Wassim Elhusseini, Nestlé Nigeria’s Chief Executive Officer, expressed appreciation to the team for their dedication amidst challenging economic conditions. He acknowledged the robust revenue growth and operating profit achieved, despite the adverse impact of the naira devaluation on financing costs and profit after tax.
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Elhusseini reaffirmed the company’s commitment to promoting the power of food through responsible local sourcing and the production of high-quality nutritious food and beverages for Nigerian families. He emphasized Nestlé Nigeria’s dedication to optimizing operations to ensure the availability and affordability of nutritious products, anticipating a positive turnaround in the business environment.
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For the financial year 2023, the company reported a foreign exchange loss of N195 billion and decided not to declare dividends.
Nestlé Nigeria’s financial performance reflects the challenges posed by currency devaluation but also underscores its resilience and determination to navigate through economic difficulties and emerge stronger.
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