Nestlé Nigeria Plc has reported a net revaluation gain of N150bn following the adoption of a revaluation model for its lands, buildings, plants, and machinery in March 2024.
This transition from cost accounting significantly impacted the company’s financial position, reflecting the gain in its Statement of Comprehensive Income, Financial Position, and Statement of Changes in Equity.
According to the company’s Financial statement, the company also recorded a remarkable 75.2 per cent revenue growth in 2024, reaching N958.8bn. Operating profit rose by 35.6 per cent to N167.9bn, while earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 45.2 per cent. These figures underscore a strong operational performance despite prevailing economic challenges.
However, Nestlé Nigeria reported a total comprehensive loss of N14.6bn, a significant improvement from the N79.4bn loss recorded in 2023. The loss was largely driven by high finance costs associated with foreign currency obligations due to the devaluation of the Naira.
Commenting on the financial results, Nestlé Nigeria’s CEO/Managing Director, Mr. Wassim Elhusseini, stated, “Our 2024 results demonstrate the resilience of our brands and teams and underscore our strong fundamentals in a challenging business environment. The impressive 75.2 per cent revenue growth for the year as well as a 35.6% improvement of our operating profit to N167.9bn reflect the robustness of our operating performance.”
A significant turnaround was observed in the fourth quarter of 2024, as Nestlé Nigeria achieved a net profit of N19.7bn, reversing a loss of N36.4bn in Q4 2023. Quarterly operating profit rose by 77.1 per cent, increasing from N32.2bn to N56.9bn. Mr. Elhusseini highlighted that this return to profitability was driven by strategic investments and operational efficiencies.
Since 2023, Nestlé Nigeria has invested N132bn in expanding its operational capacities and implementing new technologies, with N72bn allocated in 2024 alone. The company also expanded its workforce by 8% to support its growth initiatives and strengthen its market position.
In addition to financial performance, Nestlé Nigeria reinforced its commitment to corporate social responsibility. The company expanded its Empowering Rural Women project, benefiting 382 women entrepreneurs, and supported technical education by training 229 youths, with 70 graduates in 2024 alone. Furthermore, 65 new students received community scholarships, bringing the total beneficiaries to 179.
Looking ahead to 2025, Elhusseini expressed optimism about the company’s future, stating, “Our performance in Q4 2024 demonstrates that we are well-positioned to tackle the current challenges and deliver long-term value to our shareholders. We will continue prioritizing initiatives that create shared value while providing nutritious foods and beverages to meet and exceed consumer expectations.”
