Following foreign exchange losses in 2023 due to the naira depreciation, Nestlé Nigeria PLC has conducted a strategic revaluation of its fixed assets. The move comes after recording a loss before tax of N104 billion in 2023 compared to a profit of N71 billion in 2022.
The revaluation aims to provide a more accurate depiction of the company’s financial status and asset worth. Previously listed at historical costs, the property, plant, and equipment (PPE) will now reflect their fair market value, covering key facilities like factories and distribution centers.
As of March 16, 2024, the valuation revealed a total market value of N305.4 billion, marking a substantial increase from previous values recorded in 2023 and February 2024. The revaluation notably increased the market values of its assets, with land rising from N1.2 billion to N14.8 billion, buildings from N28.5 billion to N51.3 billion, and plant and machinery from N58.5 billion to N238.9 billion. This brings the total value of assets from N88.3 billion to N305.4 billion.
Source: Daily Trust