Nestlé posts N49.9bn loss in H1 as finance costs spike

Nestlé Nigeria Plc reported revenue of N261.8 billion in the first half (H1) of 2023, 17.7percent increase compared to its performance in the same period of 2022.

Gross profit stood at N107.3 billion, 34percent increase over N80.205billion earned in H1 2022.

The Company posted a loss after tax of N49.9billion, a 280percent decline over the same period in 2022. The company’s loss before income tax stood in H1’23 stood at N69.117billion as against N43.739billion profit before tax (PBT) in H1’22. Nestle finance costs rose to N137.725billion in H1’23 as against just N6.962billion in H1’22.

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Commenting on the results, Wassim Elhusseini, Managing Director and CEO of Nestlé Nigeria Plc, said, “I thank every member of our team for the unwavering commitment and dedication which resulted in the significant increase in revenue and gross profit over H1 2022 despite the challenging business environment.

“Our profit after tax was, however, negatively impacted by the recent devaluation of the Naira, which necessitated the revaluation of our foreign currency obligations. Going into the second half of the year, we will continue to focus on optimising our operations to ensure the availability and accessibility of the nutritious food and beverages our loyal customers expect from us,” Elhusseini said.