Nestle Nigeria Plc has recorded another half-year loss after tax, following the foreign exchange reform introduced by the Central Bank of Nigeria.
Nestle posted a N176.9bn loss after tax which is a 254 per cent fall from the N49.98bn it lost in the same period last year.
This was disclosed in the company’s half-year financial statement.
The company’s challenges began last year when it declared a full-year loss of N79.5bn which is 280 per cent down compared to 2022 when it posted a profit after tax of N48.96bn.
Although the company’s sales revenue surged by 55 per cent to reach N406.9 in June 2024 as against the N261.8bn recorded in June 2023, Nestle said it has continued to struggle with government policies.
The company which is famous for its brands like Maggi, Milo, Golden Morn and Nescafé posted a gross profit of N63.07bn, a rise of four per cent from the N60.79bn recorded in June 2023.
But Nestle’s profit after tax for the six months ending June 2024 was negatively impacted by the depreciation of the naira which sold nearly N1,600 per dollar earlier in 2024.
“The devaluation of the Naira led to the revaluation of our foreign currency obligations and had an adverse impact on the profit after tax resulting in a net loss of -N176.9bn for the first half of the year,” the manufacturer said.
The company’s net finance cost rose form N129.9bn last year to N315.6bn in June 2024.
As a result of the loss, diluted earnings per share which measures per-share profitability fell from a loss of N63.06 per share last year to N223.19 loss per share.
Nestle’s total assets grew to N868.95bn but the company’s liabilities valued N973.8bn exceeded its assets.
The Chief Executive of Nestlé Nigeria Plc, Mr. Wassim Elhusseini said, “We are confident in our ability to navigate the current challenges to deliver long-term value to our shareholders while contributing positively to our communities.”
Data from the Nigerian Exchange Limited (NGX) showed that the company has a market capitalisation of N729.2bn while its shares closed at N920 on Monday, July 29,2024.