For the fiscal year that concluded on December 31, 2024, Nestlé Nigeria Plc reported a 75% increase in revenue to N958.81 billion (US$638.67 million), up from N547.12 billion (US$364.4 million) in 2023.
Increased demand for its products drove robust revenue growth, but profit margins were negatively impacted by growing input costs and Nigeria’s economic difficulties. From N123.8 billion (US$82.5M) to N167.9 billion (US$111.8M) in the prior year, the company’s operating profit increased by 35.6%.
However, due to Nigeria’s high rate of inflation, production costs increased by 97.74%, from N329.95 billion (US$219.8M) to N652.46 billion (US$434.6M). Businesses nationwide are still struggling with rising borrowing costs and depreciating currencies, both of which have hurt their bottom line.
High borrowing interest rates and foreign exchange losses caused Nestlé Nigeria’s net financing expenses to rise sharply. Finance costs increased to US$261.67M from US$155.54M in 2023, while finance income decreased to US$2.24M from US$3.79M.
According to Nestlé Nigeria PLC’s CEO/Managing Director, Wassim Elhusseini: “Our 2024 results demonstrate the resilience of our brands and teams and underscore our strong fundamentals in a challenging business environment.
“Our net profit and equity were impacted by high finance costs associated with the revaluation of the company’s foreign currency obligations, due to an unprecedented devaluation of the Naira,” he added.
Nestlé Nigeria made significant progress in the fourth quarter of 2024 despite these obstacles. Nestlé recovered from a US$24.19M loss in Q4 2023 to generate a net profit after tax of US$13.12M. Additionally, operating profit increased by 77.1% to US$37.82M from US$21.4M during the quarter.
Continuing, since 2023, Nestlé Nigeria has invested US$87.74M in new technologies and capabilities to bolster its operations, with US$47.86M coming in 2024. As part of its expansion goal, the corporation also added 8% more employees. To better fit with long-term growth goals, Nestlé Nigeria switched from historical cost accounting to the revaluation model for its lands, buildings, plants, and machinery in March 2024.
Elhusseini was upbeat about 2025 as he looked ahead, saying: “We remain optimistic that our ongoing initiatives to tackle economic challenges will yield positive results and support consumer demand. We will prioritize initiatives that create shared value for all stakeholders, as they contribute to our long-term sustainability while we provide nutritious foods and beverages to meet and exceed their expectations.”
However, to reduce plastic waste and improve recyclability, Nestlé Ghana Limited has formally introduced updated packaging for its NIDO product that uses eco-friendly materials. The company’s dedication to sustainability and environmental responsibility is reflected in the new packaging.
BrandSpur news brand reports that the product’s nutritional integrity is preserved while recycling efficiency is increased because of the simpler material composition. To ensure openness for both customers and carers, the redesigned design also prominently shows important nutritional information, such as iron content.
