Nestlé pays $20m forex debt
Nestlé Nigeria Plc has made an early repayment of $20m in inter-group foreign exchange debt.
In a release filed on the Nigeria Exchange on Thursday, the repayment, which was made ahead of schedule, comes as the company continues to navigate the impact of currency devaluation, inflation, and rising finance costs, which have affected its financial performance over the past year.
Speaking on the development, the Managing Director and Chief Executive Officer of Nestlé Nigeria, Wassim Elhusseini, stated, “Our ability to make an early payment of $20m on our forex obligations underscores the strength of our financial discipline and our commitment to reducing exposure to currency volatility. Despite the economic headwinds, we continue to make strategic investments and optimise our operations to ensure long-term value creation for our stakeholders.”
The company had earlier reported a turnaround in its fourth-quarter results, returning to profitability with a profit after tax of N19.7bn in Q4 2024, compared to a loss of N36.4bn in the same period of 2023. This recovery was driven by a 95 per cent increase in total revenue to N293.5bn and a 77.1 per cent growth in operating profit to N57bn for the quarter.
For the full year 2024, Nestlé Nigeria’s revenue surged by 75.2 per cent to N958.8bn, while its operating profit increased by 35.6 per cent to N167.9bn.
However, the company reported a total comprehensive loss of N14.6bn, largely attributed to high finance costs arising from the depreciation of the naira.
Nestlé Nigeria has continued to invest in its operations, committing N132bn since 2023, including N72bn in 2024 alone, to expand capacity and improve efficiency. The company also increased its workforce by eight per cent to support growth across its portfolio.
According to the release, the early payment of the forex debt is expected to improve the company’s financial position by reducing interest expenses and forex-related risks.
Looking ahead, Elhusseini reaffirmed the company’s commitment to operational efficiency, stating, “Our investments in capacity expansion, workforce development, and product innovation will position us for sustained growth. We remain focused on navigating economic challenges while continuing to deliver value to our consumers and shareholders.”
The PUNCH reported that the chairman of Nestle Nigeria Plc, Gbenga Oyebode, has said that the foreign exchange loans from its parent company, Nestlé S. A. Switzerland, were necessary to keep the company running.
