Nestle Nigeria records N958bn revenue growth in 2024

Nestlé Nigeria has reported a 75.2% year-on-year revenue growth, reaching ¦ 958.8 billion in 2024. This was disclosed in the company’s latest financial report released on Thursday.

According to Mr Wassim Elhusseini, the Chief Executive Officer and Managing Director of Nestlé Nigeria Plc, the company’s operating profit increased by 35.6%, amounting to ¦ 167.9 billion. Additionally, Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) grew by 45.2%, reflecting strong operational performance despite significant economic challenges.

Despite these gains, Nestlé Nigeria recorded a total comprehensive loss of ¦ 14.6 billion, largely due to high finance costs stemming from currency devaluation.

Elhusseini highlighted that Q4 2024 marked a return to profitability, with a net profit of ¦ 19.7 billion, compared to a ¦ 36.4 billion loss in Q4 2023. Additionally, operating profit surged by 77.1%, increasing from ¦ 32.2 billion to ¦ 56.9 billion during the quarter.

Since 2023, Nestlé Nigeria has invested ¦ 132 billion in expanding its operations, including ¦ 72 billion in 2024, to strengthen its market position and meet increasing consumer demand. To support this growth, the company also expanded its workforce by 8%.

In March 2024, Nestlé Nigeria adopted the revaluation model for its lands, buildings, plants, and machinery, transitioning from historical cost accounting. This change resulted in a ¦ 150 billion net revaluation gain, which was reflected in the company’s Statement of Comprehensive Income, Financial Position, and Statement of Changes in Equity.

Nestlé reinforced its commitment to social impact through various initiatives. The Empowering Rural Women Project saw an increase in participation, with 382 women benefitting from the programme, helping some to expand their businesses by up to 300%. The Technical Training Programme graduated 70 additional students, bringing the total number of trained youths to 229. Furthermore, 65 new students were awarded community scholarships, increasing the total beneficiaries to 179.

Looking ahead, Elhusseini expressed optimism that the company’s ongoing strategic initiatives would help navigate economic difficulties, drive consumer demand, and ensure sustainable growth.

“Our Q4 2024 performance reaffirms our ability to overcome challenges while delivering long-term value to our shareholders. We remain dedicated to innovation, operational efficiency, and social responsibility, ensuring that we continue to provide high-quality, nutritious food and beverages that meet consumer expectations,” he said.