Nestlé’s resilience shines through as revenue hits N547.1bn amid naira devaluation trouble

Onome Amuge

Despite a significant loss of N79.5 billion in profit after tax impacted by the devaluation of the naira, Nestlé Nigeria was able to weather the storm with its resilience and experience of over 63 years in the Nigerian market. This is as the company’s revenue grew to N547.1 billion in 2023, an impressive increase of N100.2 billion from the previous year. 

The company’s 2023 financial results for the full year 2023 also showed that sales grew by 22.4 per cent, highlighting the continued strength of Nestlé’s brand and products in the local market. 

In addition to the growth in sales, Nestlé also saw improvements in its gross profit and operating profit for the full year 2023. This is as gross profit increased by 39.4 per cent to N217.2 billion, up from N155.8 billion in 2022. Operating profit rose by 41.2 per cent to N122.7 billion, an increase of N35.8 billion from the previous year.

Wassim Elhusseini, the managing director and CEO of Nestlé Nigeria PLC, attributed the company’s success in 2023 to the unwavering commitment and dedication of its team. In a statement, he thanked the team for its hard work and resilience in the face of economic challenges. He also noted that despite these challenges, Nestlé was able to achieve significant revenue growth and improve its operating profit compared to the previous year. 

In his remarks, Elhusseini pointed to the devaluation of the Nigerian naira in 2023 as a key factor impacting the company’s profitability. He explained that this led to a revaluation of the company’s foreign currency obligations, which in turn increased its financing costs and reduced its profit after tax. 

Despite the challenges presented by the economic environment, Elhusseini stated that Nestlé is well-positioned to emerge stronger and continue to serve its customers and consumers. The company’s iconic brands, which have a strong presence in the Nigerian market, provide it with a solid foundation to build on in the future. The  the Nestlé Nigeria CEO expressed his confidence in the company’s long-term prospects and his commitment to delivering value to all stakeholders.

Looking ahead, Elhusseini said the company remains dedicated to its purpose of unlocking the power of food through responsible local sourcing and confection of the high-quality nutritious food and beverages that families across Nigeria prefer. 

He added, “We also remain steadfast in optimizing our operations to ensure the availability and accessibility of affordable and nutritious products to our consumers in anticipation of a timely turnaround in the business environment.”