NIGERIA – Nestlé Nigeria Plc has recorded a 75% increase in revenue for the financial year ending December 31, 2024, reaching N958.81 billion (US$638.67M), compared to N547.12 billion (US$364.4M) in 2023.
The company attributed the growth to higher demand for its products, but rising input costs and economic challenges in Nigeria continued to strain profit margins.
The company’s operating profit grew by 35.6% to N167.9 billion (US$111.8M), up from N123.8 billion (US$82.5M) in the previous year.
However, production expenses surged as the cost of sales increased by 97.74% to N652.46 billion (US$434.6M), up from N329.95 billion (US$219.8M). The rise in expenses reflected the impact of Nigeria’s high inflation and currency devaluation, which have affected companies across the country.
Rising finance costs amid currency devaluation
Foreign exchange losses and borrowing costs placed additional pressure on Nestlé Nigeria’s profitability.
The company’s finance income declined from US$3.79M in 2023 to US$2.24M in 2024, while finance costs rose sharply to US$261.67M from US$155.54M.
The increased costs were largely due to high interest rates on borrowings and the revaluation of foreign currency obligations following the devaluation of the Naira.
“Our 2024 results demonstrate the resilience of our brands and teams in a challenging business environment,” said Wassim Elhusseini, CEO/Managing Director of Nestlé Nigeria Plc.
“Our net profit and equity were impacted by high finance costs associated with the revaluation of the company’s foreign currency obligations due to an unprecedented devaluation of the Naira.”
Recovery in fourth quarter performance
Despite the financial pressures, Nestlé Nigeria achieved a turnaround in the fourth quarter of 2024, reporting a net profit after tax of US$13.12M, recovering from a net loss of US$24.19M in the same period of 2023.
The company’s operating profit during the quarter increased by 77.1% to US$37.82M, up from US$21.4M.
Nestlé Nigeria has also been investing in operational efficiency and capacity expansion. Since 2023, the company has invested US$87.74M in new technologies and production capabilities, including US$47.86M in 2024. As part of its growth strategy, Nestlé Nigeria also expanded its workforce by 8%.
In March 2024, the company adopted the revaluation model for its lands, buildings, plants, and machinery, shifting from historical cost accounting.
The transition aligns with its long-term growth objectives and reflects adjustments in asset valuation.
Sustainability initiatives in West Africa
Elsewhere in the region, Nestlé Ghana Limited has introduced redesigned packaging for its NIDO product, incorporating eco-friendly materials to minimize plastic waste and enhance recyclability.
The new packaging, launched in early 2024, is part of Nestlé’s sustainability commitments.
The updated design simplifies material composition for improved recycling efficiency while maintaining product quality. It also prominently displays key nutritional information, including iron content, to provide greater transparency for consumers.
Nestlé’s operations in Central and West Africa are overseen by the Nestlé Central and West Africa entity, established in 2005.
The regional headquarters, based in Accra, Ghana, coordinates business activities across 25 countries from Mauritania to the Central African Republic. Over the past three years, Nestlé has invested CHF 183 million (US$208.3M) in the region, supporting business growth and consumer-focused initiatives.
The company’s portfolio in Central and West Africa includes dairy, culinary products, coffee, beverages, infant nutrition, and bottled water. Brands such as MAGGI, MILO, CERELAC, GOLDEN MORN, NESCAFÉ, NIDO, and PURE LIFE continue to serve diverse consumer needs across the region.
