Nestlé Nigeria: Strategic Financial Moves Amid Economic Challenges
By Arikawe Femi
In the face of significant economic hurdles, Nestlé Nigeria has showcased remarkable resilience through strategic financial planning. The company reported a notable revenue increase, reaching N665.3 billion in the first nine months of 2024, a substantial rise from N396.6 billion in the same period last year.
However, the company experienced a sharp rise in after-tax losses, totaling N184.3 billion, compared to N43.1 billion in the previous year. This financial strain is attributed to the devaluation of the Naira and inflationary pressures, which have impacted both consumer purchasing power and operational costs.
In response, Nestlé Nigeria has adopted robust margin management and cost control measures. The launch of innovative products such as Maggi Signature Jollof and Milo 3-in-1 has positively influenced their gross and operating profits, demonstrating the company’s commitment to adapting to market demands.
Wassim Elhusseini, CEO of Nestlé Nigeria, remains confident in the company’s ability to navigate these challenges. He emphasized efficient operations and continued investment in employee skills as key strategies for overcoming current financial pressures. Despite accounting losses, Nestlé Nigeria maintains a strong net cash flow, recording N49 billion as of 2023, indicating the company’s operational resilience.
Looking forward, Nestlé Nigeria plans to raise an estimated N100 billion in capital to support its operations and ensure the consistent availability of high-quality food and beverages for its consumers. These strategic financial initiatives underscore Nestlé’s commitment to sustaining its market presence and delivering value to its stakeholders.
