Shortly after Nestle Nigeria released its FY 2019 results last year, analysts wrote lofty and pedantic reviews on what was a truly decent year recording of about 19% improvement in operating profit. A precursor to stellar achievements in the coming year was everyone’s apparent projection. As it turns out, both controllable and uncontrollable forces have played their part in piling misery on the fortunes of the food giant.
2020 was hard-hitting. Covid-19 greeted Africa fully in the second quarter, straight away making life difficult for individuals and businesses. Its sour fruits are responsible for Nestle Nigeria’s outward financial decline. Its effects have been ever-present since, cutting across all the quarters. In Q2 of 2020, Pre-Tax Profit immediately dipped from N17.4billion to N16.4billion. By the end of Q3, pre-tax profit had succumbed 12.83%, eliminating almost the good work from the year before and by FY 2020, Nestle closed with a 14% decline in profit position.