By Aduragbemi Omiyale
Despite incurring more losses as a result of the challenging operating environment caused by inflationary pressures, which have weakened the purchasing power of consumers, Nestle Nigeria Plc has promised not to tamper with its quality, assuring value for money.
In the first nine months of 2024, the company recorded a loss after tax of N184.3 billion compared with the N43.1 billion loss posted in the same period of 2023.
The firm, in its financial statements for the period under review, blamed the devaluation of the Naira for this loss, which also led to a pre-tax loss of N255.4 billion versus the loss before tax of N148.2 billion achieved in the first nine months of last year.
Amid these losses, Nestle emphasised that, “Our priority remains creating value for our consumers by providing the nutritious foods and beverages they know and love.”
The firm expressed confidence that it would navigate this murky water through “efficient operations and innovation” as well as more investments in its employees.
Business Post reports that Nestle has a ray of hope in the Nigerian market as its revenue increased between January and September 2024 to N665.3 billion from N396.6 billion, with gross profit rising to N206.3 billion from N160.2 billion.
However, the revaluation of the company’s foreign currency obligations, triggered by the Naira devaluation, elevated its finance costs to N366.2 billion from N148.2 billion.
But the chief executive of Nestle Nigeria, Mr Wassim Elhusseini, stated that the improvement in the gross earnings and operating profit show that the company’s brands are doing well at the market despite the challenges faced by consumers.
“We are also pleased with the positive impact of new products introduced over the past 18 months, including Maggi Signature Jollof, Maggi Soya Chunks, NIDO Milk and Soya, Milo 3-in-1, and Cerelac Rice, among others,” he said.
He said further that, “To meet growing consumer demand, the company has made significant investments in new capacities and technologies across its operations.”