Nestle Nigeria Plc Records Loss For The Year Ended 2023

OpenLife Nigeria reports that Nestle Nigeria Plc has reported a loss before tax of N104 billion for the year ended 2023 compared to a profit before tax of N71 billion same time in 2022

This is according to the 2023 financial statement of the company published on the NGX on Wednesday, 28th February 2024.

Nestle Nigeria Plc is a publicly listed food and beverage specialty company, mostly owned by a holding company based in Switzerland and has ties to the company Tolaram Group.

The company was founded in 1961 and conducted trading under the name of Nestle Products Nigeria Limited

Simultaneously, the company reported a foreign exchange loss of N195 billion which was the major reason for the overall loss reported by the company.

The losses also resulted in a wipeout of the company’s shareholder funds which is now a negative N78 billion from N30.2 billion a year earlier. Nestle will also not be able to pay dividends based on the status of its shareholder’s funds.

Breakdown of the result

• Revenue for the year is N547.1 billion up from N446.8 billion reported a year earlier
• Gross profit N217.7 billion versus N155.7 billion (2022), +39.8% YoY
• Operating Profit N123.7 billion versus N87.4 billion (2022), +41.5% YoY
• Net Finance Cost -N227.8 billion versus N16.3 billion (2022), +1,297%
• Pre-tax loss of N104 billion versus Pre-tax profit of N71.1 billion (2022).
• Loss after tax of N79.4 billion versus Profit after tax of N48.9 billion (2022).
• Shareholder Funds -N78 billion versus last year’s N30.2 billion.
• Interest-bearing loans of N402.2 billion versus N155.2 billion (2022)

However, business analysts are of the view that the negative shareholder funds incurred by Nestle will most likely lead to a fresh raise capital of over N100 billion to ensure it continues to operate effectively as well as ensuring the going concern status of the company is guaranteed.