…stages Q4’24 rebound

Nestlé Nigeria Plc has reported a staggering loss before tax (LBT) of N221.589 billion for the financial year ended December 31, 2024, marking a 113 per cent year-on-year (YoY) decline from 2023.

The sharp downturn was primarily attributed to surging finance costs, exacerbated by the persistent devaluation of the naira.

However, the multinational food and beverage giant staged an impressive rebound in the final quarter of 2024, posting a profit after tax (PAT) of N19.676 billion, a remarkable turnaround from the N36.406 billion loss recorded in Q4’23.

Despite the significant loss, Nestlé Nigeria reported robust revenue growth, with full-year revenue soaring 75.25 per cent YoY to N958.815 billion.

This growth was predominantly fueled by strong domestic demand, underscoring the resilience of the company’s brands in a challenging macroeconomic landscape.

Export sales also saw a notable uptick, rising to N6.6 billion in 2024 from N1.2 billion in the prior year, reflecting strategic efforts to diversify revenue streams.

Highlight of the financial performance for the full year ended December 31, 2024, reveal a complex picture of robust revenue growth countered by escalating finance costs and mounting losses.

The company’s revenue surged by 75.25 per cent yearon-year (YoY) to N958.815 billion, driven by strong domestic demand and strategic market expansions.

However, this impressive topline growth was tempered by a 97.75 per cent YoY increase in the cost of sales, which climbed to N652.460 billion, significantly compressing profit margins.

The multinational conglomerate recorded a 41.06 per cent year-on-year increase in gross profit, reaching N306.355 billion, reflecting sustained operational efficiency.

However, rising operational costs pressured the bottom line. Marketing and distribution expenses rose by 44.82 per cent YoY to N106.852 billion, while administrative expenses surged by 58.34 per cent YoY to N32.530 billion.

Consequently, operating profit growth lagged behind revenue expansion, increasing 35.62 per cent YoY to N167.876 billion.

Despite a commendable operational performance, Nestlé Nigeria faced an overwhelming rise in finance costs, which soared by 68.23 per cent year-onyear to N392.832 billion.

The devaluation of the Naira and increased borrowing costs contributed significantly to these escalating expenses. Total borrowing climbed by 62.48 per cent year-on-year to N653.702 billion, further straining financial stability.

As a result, the company reported a loss after tax of N164.595 billion, representing a 107.11 per cent increase yearon-year. Loss per share also mirrored this trend, standing at N207.65, reflecting deepening financial distress.