Nestle emerges resilient post-pandemic with 23% profit jump
…intensifies efforts to develop host communities
Nestlé Nigeria, a top player in the Fast moving Consumer Goods (FMCG) industry has emerged resilient in its nine months financial report, which showed a 23 percent increase in its revenue post-pandemic.
The outbreak of the coronavirus pandemic, which fuelled economic and commercial disruption as well as the challenging operating business environment, took a toll on the company’s financial record in the previous year as it recorded marginal increase in revenue and decline in profit.
However BusinessDay analysis of Nestlé’s financials for the nine months period ended September 30, 2021 showed that the company during this period, recorded revenue worth N261 billion which was a 23 percent increase from the N212 billion recorded in the same period of 2020.
The bulk of its revenue was gotten from the sale of its goods in Nigeria which contributed N258.31 billion while its export proceeds contributed N4 billion to its revenue.
Further analysis of its financials post pandemic shows that the company’s gross profit grew by 12.5 percent from N90 billion in 2020 to N101 billion in 2021. Its profit before tax during this period grew by five percent to N51.58 billion in 2021 from N49.26 billion in the previous year.
After its tax deductions of N17.99 billion, its total profit for the period improved by five percent to N33.5 billion in 2021 as against the N31.9 billion realized in the corresponding period of 2020.
Nestlé’s total equity declined by 17 percent to N34.7 billion from N41.8 billion in the previous year, however its share capital retained its value of N396 million.
The firm revealed in its financial statement that it is committed to local sourcing of raw materials leveraging the local value chain.
“On a continuing basis, the Company explores the use of local raw materials in its production processes and has successfully introduced the use of locally produced items such as soya bean, maize, cocoa, palm olein and sorghum in a number of its products,” it stated
Nestle beyond its profit goal is also committed to the development of its host communities through its Corporate Social Responsibility (CSR) activities. The company commissioned multiple community development projects in Manderigi and Abaji, comprising classroom blocks, water and sanitation facilities.
With the completion of 3 classrooms at Abaji South Primary School, over 150 children now have access to a more conducive learning environment, the new water facilities in Abaji West Primary School and Manderigi provide over 1,200 individuals including educators, learners and their families within the community access to safe and clean water.
The company is also interested in ensuring universal and equitable healthcare for everyone as it recently renovated facilities and equipped the laboratory at Ajaka Primary Healthcare Center in Sagamu, an intervention which will help improve the delivery of healthcare services to over 200,000 indigenes who depend on the center for affordable and accessible healthcare.
The FMCG firm is also committed to people development particularly youths as it equips young people with the employability skills required to find gainful employment or create their own businesses under the Technical Training Program (TTP).
The initiative has recorded much success as the company recently celebrated the 10th anniversary of the TTP from which over 140 students have benefitted since its inception with over 90 percent of them directly employed by Nestlé Nigeria.