Nestle Nigeria Plc reported a 16.1% increase in first-quarter revenue to N127.97 billion (Q1) ended March 31, 2023 from N110.23 billion (Q1) ended March 31, 2022, but a large increase in financing reduced its earnings.
Due to a significant increase in its financing cost, which ended Q1 2023 at N5.34 billion from N2. 37 billion in Q1 2022, and a 58.2% reduction in finance income, the company recorded a net finance cost of N3.75 billion in Q1 2023 as opposed to N1.45 billion in Q1 2022. Ghana is Nestle Nigeria’s second-largest source of revenue.
Nigeria’s income rose to N443.41 billion in 2022 from N346.54 billion in 2021, whereas Ghana’s revenue fell to N2. 74 billion in 2022 from N2.75 billion in 2021. The price of a sale lines are input expenses, which rose ahead of sales revenue at 32. 3percent to N291.05billion in 2022 from N219.99 billion in 2021. The company closed 2022 with N155.76billion gross earnings, an increase of 18.15 per cent from N131.84billion reported in 2021.
Nestlé Nigeria’s management is showing a lot of caution on the side of operating expenses in order to avoid a repeat of 2021 pattern where virtually all the gains in revenue were consumed by cost increases.
As Nestle Nigeria was able to drive its revenue performance, its balance sheet position emerged stronger, closing 2022 at N415. 04billion, representing an increase of 34 per cent from N310.24billion reported in the full year ended 2021.
As total non-current assets rose by 17 per cent to N124.53billion 2022 from N106. 3billion reported in 2021, as total current assets hits N290.5billion in 2022 from N203.9billion reported in 2021 .In addition, total equity of Nestle Nigeria rose significantly by 42 per cent to N30. 29billion in 2022 from N21.38billion in 2021. On liabilities, it increased by 23 per cent to N384.75billion in 2022 from N288.86billion in 2021 financial year.