WHY NESTLÉ REMAINS FAMILIES FAVOURITE HEALTHY AND BEVERAGE FOODS CHOICE AND HER MOMENTUM GROWTH FINANCIAL STATEMENT
By Oki Samson, Trek Africa Newspaper
In the aquatic city of Lagos to the Sunshine city of Ondo, to the northern states of the country, to the Eastern part of the nation, you meet Nigerians in their flashy-tinted red-and-black carts dispensing sizzling hot coffee to the old and young as they rush for travelling, to their offices, schools, and markets or while they are beating traffic in cities.
Every rainy day, cold evening, and others is characterized by the same movement across the ever-bustling streets of Lagos. This is courtesy one of Nigeria’s most iconic brands, Nestlé Nigeria Plc.
This movement doesn’t go for free. For every cup of hot Nescafé, the young and old express top-of-the-world goodness. For every cup of hot Nescafé, money exchange hands. For every cup, each Nescafé cart pusher smiles home at the end of the day for a job well-done. For every cup, Nigeria’s local economy is positively impacted. This is courtesy one of Nigeria’s enduring brands, Nestlé Nigeria Plc, Oki Samson of Trek Africa Newspaper observed.
In virtually every home, Nigerian mothers tell their children to ‘go and get me maggi’ to flavour meals. Despite the stiff competition in the food seasoning industry, Nestlé’s Maggi still stands head and shoulders above.
The name ‘Maggi’ is Nigeria’s generic brand name for seasoning and flavours!
Nestlé Purelife is the toast of Nigerian social functions such as weddings, birthdays, child christening and dedication, housewarming, funerals. Popularly called ‘owanbe’, Nigeria’s melting pot of celebration enjoys the refreshing goodness of Nestlé Nigeria Plc.
You will find the pet bottles of the Nestlé Purelife water served to guests at all these parties. Thanks to the power of Nestlé Nigeria Plc.
Need us to tell you that breakfast is incomplete without Nestlé Golden Morn and Milo brands. These two brands are very good staples especially among the child population.
Although they come in standard packs, those who cannot afford it go for the sachet size. The quality or health benefits is not affected, price irrespective. Nestlé Nigeria Plc is doing great things!
What you will find on the books of Nestlé Nigeria Plc. will be no different from what you find on the streets. The financial implication for the management, staff, and shareholders of Nestlé is pleasant.
A recent financials for the second quarter of 2024 gives a sneak peek into the books. Trek Africa Newspaper reported on 1st August, 2024: ‘Nestlé Nigeria PLC has announced its financial results for August 2024.
‘Commenting on the results, Mr. Wassim Elhusseini, the CEO/MD of Nestlé Nigeria PLC said, “The results from the first half of 2024 reflect a clear growth momentum despite continued challenges in the business environment. Particularly noteworthy is our secondquarter performance with a 67% increase in sales year-on-year, underscoring the strength of our brands and the trust our consumers place in us.
Delivering these results has involved optimizing operational efficiencies and, more importantly, the hard work and dedication of our employees who have been crucial to this success. We also appreciate the unwavering support of our business partners and shareholders.
As we move forward in 2024, our priority remains creating value for our consumers by providing the nutritious foods and beverages they know and love.
We are confident in our ability to navigate the current challenges to deliver long-term value to our shareholders while contributing positively to our communities. Our commitment to excellence and innovation will continue to guide us as we strive to meet and exceed the expectations of our stakeholders.”
The Financial results of FY 2024 for Nestlé Nigeria PLC is a fuller confirmation. Trek Africa Newspaper reliably reported on 1st August, ‘Nestlé Nigeria Plc announced its financial results for the year 2024.
This is a brilliant showing for an organization which ‘purpose is to unlock the power of food to enhance quality of life for everyone today and for generations to come’. That said, financials of Nestlé Nigeria Plc also makes the management, staff, and shareholders happy.
This is pleasant. This is the interpretation of Nestlé’s financial books as told by an everyday Nigerian. This is the epistle of Nestlé Nigeria Plc as told by the streets!
Nestlé Nigeria PLC’s sales grew by 55% in the Jan-Jun 2024 period with earnings of N406.9 billion, an increase of N145.2 billion over Jan-Jun 2023. The gross profit came at N127.3 billion versus N107.3 billion in the same period of 2023. Operating profit stood at N63.1 billion versus N60.7 billion in Jan-Jun 2023. Further, the devaluation of Naira led to the revaluation of our foreign currency obligations and had an adverse impact on the profit after tax resulting in a net loss of -N176.9 billion for the first half of the year.
For the Apr-Jun 2024 period, Nestlé Nigeria PLC’s sales grew by 67%, with earnings of N223.4 billion, an increase of N89.7 billion over Apr-Jun 2023. The gross profit came at N78.2 billion versus N55.7 billion in the same period of 2023. Operating profit stood at N42.1 billion versus N32.1 billion over Apr-Jun 2023. Further, the devaluation of Naira led to the revaluation of our foreign currency obligations and had an adverse impact on the profit after tax resulting in a net loss of -N34.2 billion versus -N66.1 billion in Apr-Jun 2023.
Results:
| Jan – Jun 2024 | Jan – Jun 2023 | |
| N’000 | N’000 | |
| Revenue | 406,972,172 | 261,769,509 |
| Cost of Sales | (279,667,704) | (154,434,614) |
| Gross Profit | 127,304,468 | 107,334,896 |
| Marketing and Distribution expenses | (50,956,901) | (40,310,521) |
| Administrative expenses | (13,260,600) | (6,194,298) |
| (Write back)/impairment of financial assets | (9,720) | (37,418) |
| Results from operating activities | 63,077,247 | 60,792,659 |
| Finance income | 2,508,291 | 7,815,651 |
| Finance costs | (318,112,335) | (137,725,905) |
| Net finance costs | (315,604,044) | (129,910,255) |
| (Loss)/profit before income tax | (252,526,797) | (69,117,596) |
| Income tax credit/ (expense) | 75,612,401 | 19,136,251 |
| Loss for the period | (176,914,397) | (49,981,345) |
Nestlé Nigeria is Africa’s top food and beverage company, known for its quality, excellence, and commitment to creating shared value. With a heritage of more than 63 years in Nigeria and its house-hold brands, the firm continues to ensure the availability and accessibility of nutritious food and beverage products. In addition, the firm supports the communities closest to its operations and takes action to safeguard the environment through sustainable business practices.
