Nestlé Côte d’Ivoire rebounds with 52.3% profit increase in H1 2024

CÔTE D’IVOIRE – Nestlé Côte d’Ivoire reported a robust recovery for the first half of 2024, with net profits rising by 52.3% compared to the previous year. 

This substantial improvement in profits comes after the company faced significant challenges in 2023 due to increased input costs, weakening exports, and geopolitical instability in key regional markets.

For the first six months of 2024, the company’s net profit rose to FCFA12.4 billion (US$20.4 million), up from FCFA8.1 billion (US$13.4 million) in the same period last year. 

This marks a substantial turnaround from 2023 when profits had dropped by 20.6% as rising raw material prices and a decline in exports weighed heavily on financial performance. 

Last year’s results were impacted by lower exports to Nigeria, strained by inflation, foreign exchange issues with Ghana, and political unrest in Burkina Faso and Niger, which further disrupted trade.

Revenue and local sales surge

In addition to profit gains, Nestlé Côte d’Ivoire’s turnover grew by 17.1% in H1 2024, reaching FCFA116.4 billion (US$192.4 million) from FCFA99.4 billion (US$164.3 million) the previous year. 

The revenue increase is attributed to strong local sales and the resurgence of export demand, particularly from markets in the Sahel region and Guinea. The company had projected this growth, with stronger sales trends emerging in late 2023 and carrying over into the first half of 2024.

Operating profit for the first half of 2024 also climbed significantly, rising by 37.1% from 2023 levels to reach FCFA20.9 billion. Profits from ordinary activities saw an even steeper increase, with a 43.7% rise to total FCFA18.1 billion. 

Nestlé Côte d’Ivoire noted these improvements as indications of a broader recovery, with growth reflecting both local market resilience and sustained demand in its export markets.

Investment in local R&D and key product lines

Nestlé Côte d’Ivoire has been a significant presence in the region, with a production facility in Abidjan and an R&D center established there in 2009 to bolster product development for local and regional markets. 

The company’s portfolio in Côte d’Ivoire includes popular brands such as Maggi, Nescafé, Milo, Nido, and Cérélac, which remain staple products in the Ivorian and neighboring West African markets. Its B2B division, Nestlé Professional, supports business clients across the foodservice sector.

Stock performance and outlook

Despite the positive financial results, Nestlé Côte d’Ivoire’s stock had decreased by 3.9% since the beginning of 2024, highlighting lingering concerns from 2023’s disappointing earnings. 

The announcement of this turnaround could, however, lead to renewed investor interest and potentially buoy the stock price in the coming months.

As the company enters the second half of 2024, it anticipates continued growth despite the challenges of fluctuating input costs and regional economic volatility.