Nestle Nigeria reported a net loss of N176.9 billion for the first half of 2024, a sharp increase from the N49 billion loss in the same period of 2023.
The company’s revenue grew by 55% to N407 billion, but rising costs, including an 81% increase in the cost of sales, significantly impacted its profitability.
Net finance costs surged by 143%, primarily due to a substantial net foreign exchange loss of N263.7 billion.
In the second quarter of 2024, Nestle’s revenue was N223.5 billion, up 67% from Q2 2023. Despite this growth, the company recorded a loss before tax of N56.4 billion, which was an improvement from the N94 billion loss in Q2 2023.
Finance costs decreased by 25% year-over-year due to a stable exchange rate, but the overall financial strain remained high.
Nestle’s total assets increased by 49% due to a revaluation of property, plant, and equipment. However, negative equity grew by 34% to N104.9 billion by the end of H1 2024.
The company faced higher interest expenses and increased borrowing, contributing to its financial difficulties. Despite some export revenue growth, Nestle Nigeria’s financial health continues to be under significant pressure.