The board of Nestlé Nigeria approved the adoption of a revaluation model on March 25, 2024, to reflect the market value of property, plants, and equipment.
This was made known in a statement on the proceedings at the Extraordinary General Meeting which was held last week.
“The board has approved the adoption of the ‘revaluation model’ on March 25, 2024, to reflect the market value of the property, plant, and equipment. and give more reliable and relevant information on the financial position of the company,” the statement said.
It said the financial statements for January to March 2024 were prepared based on the revaluation model for the class of assets revalued under property, plant, and equipment, and subsequent financial statements will be prepared based on the revaluation model.
“Niyi Fatokun assessed the market value of the PPE in the above facilities as of March 16, 2024, at N305.4 billion while the carrying value under the historical cost model as of December 31, 2023, was N88.3 billion,” the statement added.
The board informed the shareholders that the company’s negative net assets at the end of 2023 were driven by the revaluation of the foreign currency obligations.
“In 2023, the company grew by 22.4 percent over the previous year, with earnings of N547.1 billion, an increase of N100.3 billion over 2022, according to the firm’s board of directors.
“Gross profit was N217.2 billion, representing a 39.4 percent increase from N155.8 billion in 2022. Operating profit grew by 41.5 percent to N123.7 billion, an increase of N36.3 billion over 2022, and the company generated a positive cash flow of N48.8 billion,” it said.
The board said it will continue to monitor the developments on the policy front and support the measures to address the negative net assets of the company.
