Nestle Nigeria records N958b revenue growth in 2024

Nestlé Nigeria has announced a full-year revenue growth of 75.2 per cent, reaching N958.8 billion in 2024.

This is contained in a corporate disclosure by Nestlé Nigeria on Thursday.

Mr Wassim Elhusseini, Chief Executive Officer and Managing Director of Nestlé Nigeria Plc, in the disclosure, said the company’s operating profit improved by N167.9 billion representing 35.6 per cent.

Elhusseini said Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) grew by 45.2 per cent.

He said these results indicated a robust operational performance in a challenging market.

According to him, the company’s total comprehensive loss stood at N14.6 billion compared to N79.4 billion in 2023, impacted by high finance costs due to currency devaluation.

The CEO said the 2024 results demonstrated the resilience of its brands and teams and underscored strong fundamentals in a challenging business environment.

“The impressive 75.2 per cent revenue growth for the year as well as 35.6 per cent improvement of our operating profit to N167.9 billion reflect the robustness of our operating performance.

“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.

“I am very pleased to state that our quarter four 2024 standalone results mark a return to profitability with a net profit of N19.7 billion, against a loss of N36.4 billion in the fourth quarter of 2023.

“Our investments of N132 billion in our operations since 2023, including N72 billion in 2024, are strategically aligned to enhance our market position and meet the consumer demand.

“We also expanded our workforce by eight per cent to support the growth across our portfolio.

“We extend our gratitude to our employees whose decisive actions contributed to our results. We also thank our partners for their vital contributions during these challenging times.”

Elhusseini said that the Nestlé Nigeria Plc achieved a net profit after tax of N19.7billion in the fourth quarter of 2024, compared to a loss of N36.4 billion in the fourth quarter of 2023.

He said the operating profit in the quarter increased by 77.1per cent, rising from N32.2 billion to N56.9 billion.

The managing director explained that the turnaround from loss to profitability underscored the strength of the company’s underlying fundamentals.

He said since 2023, the company had invested N132 billion Naira in new capacities and technologies within its operations, including N72 billion in 2024.

“Also in 2024, the company increased its workforce by eight per cent. These investments are strategically aligned with its long-term goals to strengthen its market position and meet consumer demand.

“In March 2024, Nestlé Nigeria had adopted the revaluation model for its lands, buildings, plants and machinery, transitioning from historical cost accounting.

“This change resulted in a net revaluation gain of N150 billion, reflected in the company’s Statement of Comprehensive Income, Financial Position, and Statement of Changes in Equity.

“In 2024, Nestlé Nigeria balanced its operational performance with social responsibility, remaining steadfast in creating shared value as a positive force for good in society.

“It demonstrated its dedication to women and youth development through several initiatives,” he said

Nestlé’s CEO noted that the number of participants in the company’s Empowering Rural Women project which supported women to grow their businesses by up to 300 per cent grew to 382.

He said 70 additional students graduated from the technical training programme which had equipped 229 youths with the technical skills to drive Nigeria’s industrial transformation.

According to him, 65 new students received Nestlé’s community scholarship which helped 179 youths get the technical foundation they need.

Looking ahead to 2025, Elhusseini said, “We remain optimistic that our ongoing initiatives to tackle economic challenges will yield positive results and support consumer demand.

“Our performance in the fourth quarter of 2024 demonstrates that we are well-positioned to tackle the current challenges and deliver long-term value to our shareholders, guided by our dedication to operational efficiency and innovation.

“We will prioritise 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.”