Nestlé Nigeria reports N221.6 billion loss before tax in 2024, returns to profitability in Q4 

The company attributed the loss to rising finance costs, largely driven by the devaluation of the Naira.

However, Nestlé bounced back in Q4 2024, posting a profit after tax of N19.676 billion, a sharp recovery from the N36.406 billion loss recorded in Q4 2023.

Also, Nestlé’s revenue grew significantly in 2024. According to the audited financial statements reviewed by Naijaonpoint, the company’s full-year revenue surged by 75.25% YoY to N958.815 billion, driven by strong domestic sales.

While domestic sales continued to dominate revenue, export sales increased to N6.6 billion in 2024, compared to N1.2 billion in 2023.

Commenting on the results, Nestlé Nigeria’s CEO, Wassim Elhusseini, acknowledged the impact of economic challenges on the company’s financials, particularly the high finance costs from foreign exchange revaluation losses.

“Our 2024 results demonstrate the resilience of our brands and teams despite the tough business environment. The impressive 75.2% revenue growth and 35.6% increase in operating profit to N167.9 billion highlight our strong operating performance,” Elhusseini said.

He also noted that the company’s return to profitability in Q4 2024 was a key achievement, as Nestlé recorded a net profit of N19.7 billion, reversing the N36.4 billion loss in Q4 2023.

Nestlé Nigeria invested N132 billion in operations since 2023, including N72 billion in 2024, to expand its market position and meet consumer demand. The company also grew its workforce by 8% to support expansion efforts.

Other highlights of the results 

One of the most critical financial challenges for Nestlé Nigeria in 2024 was the sharp rise in finance costs, which surged 68.23% YoY to N392.832 billion.

This figure significantly exceeded operating profit, making it the primary factor behind the company’s full-year loss.

The rise in finance costs was driven by: 

Consequently, loss after tax for the year widened to N164.595 billion, marking a 107.11% increase from 2023. The loss translated into a loss per share of N207.65.

Nestlé Nigeria’s financial position weakened significantly, with cash and cash equivalents plunging 86.50% YoY to N22.642 billion, reflecting reduced liquidity.

This decline raises concerns over the company’s ability to manage short-term obligations, especially amid rising borrowing costs.

This decline raises concerns over the company’s ability to manage short-term obligations, especially amid rising borrowing costs.

Total assets increased by 47.60% YoY to N858.698 billion, indicating growth in investments and business expansion.

However, shareholders’ funds stood at a negative N92.290 billion, reflecting accumulated losses and pressure on equity.

Nestlé Nigeria enters 2025 at a critical juncture, where cutting finance costs, strengthening liquidity, and sustaining revenue growth will be crucial for long-term profitability.

Its stock closed at N975.00 per share on Wednesday, February 26, 2025, gaining 11.4% in value. Despite the recent rebound, it ranks 51st in year-to-date performance after losing 20.5% of its value in 2024.