NAIRAMETRICS
Nestle Nigeria Plc has reported a loss before tax of N104 billion for the year ended 2023 compared to a profit before tax of N71 billion same period in 2022
This is according to the 2023 financial statement of the company published on the NGX on Wednesday, 28th February 2024.
The company reported a foreign exchange loss of N195 billion which was the major reason for the overall loss reported by the company.
The forex losses also resulted in a wipeout of the company’s shareholder funds which is now a negative N78 billion from N30.2 billion a year earlier. This means the company’s liabilities now exceed its assets.
Nestle will also not be able to pay dividends based on the status of its shareholder’s funds.
Breakdown of the result
- Revenue for the year is N547.1 billion up from N446.8 billion reported a year earlier
- Gross profit N217.7 billion versus N155.7 billion (2022), +39.8% YoY
- Operating Profit N123.7 billion versus N87.4 billion (2022), +41.5% YoY
- Net Finance Cost -N227.8 billion versus N16.3 billion (2022), +1,297%
- Pre-tax loss of N104 billion versus Pre-tax profit of N71.1 billion (2022).
- Loss after tax of N79.4 billion versus Profit after tax of N48.9 billion (2022).
- Shareholder Funds -N78 billion versus last year’s N30.2 billion.
- Interest-bearing loans of N402.2 billion versus N155.2 billion (2022)
According to records seen by Nairametrics, Nestle has drawn down about $362.25 million in foreign currency loans. The loans were obtained from its parent company Nestle SA.
Nestle’s Going Concern Status
The company acknowledged the effect of the losses on its going concern status stating as follows
- “The Company made a net loss of N79 billion (2022: net profit N49 billion) for the year ended 31 December 2023 and as at that date, its total liabilities exceeded its total assets by N78 billion (2022: net asset N30 billion).”
- “Despite the strong operational performance, the net profit is impacted by significant devaluation of the naira. The company believes that as macroeconomic situation stabilizes, the same would yield positive impact to the overall economy as well as company results.”
