Nestle Nigeria Plc recorded a profit before tax of N12.46 billion in Q3 2023, a year-on-year decline of 14.92% from the corresponding quarter in 2022.
The group recorded a revenue of N134.82 billion during the quarter, thus modifying the group’s nine-month earnings to N396.59 billion, representing a year-on-year increase of 18.93% from the corresponding period in 2022.
Key Highlights Q3 2023 vs Q3 2022
- Revenue: N134.82 billion, +21.44% YoY
- Cost of sales: N81.99 billion, +10.88% YoY
- Gross profit: N52.84 billion, +42.49% YoY
- Marketing and distribution expenses: N18.57 billion, +23.58% YoY
- Administrative expenses: N3.47 billion, +3.41% YoY
- Operating profit: N30.79 billion, +64.71% YoY
- Net finance cost: N18.33 billion, +352.68% YoY
- Profit before tax: N12.46 billion, -14.92% YoY
- Profit for the period: N6.91 billion, -44.25% YoY
- Earnings per share: N8.72, -44.28% YoY
- Total assets: N499.94 billion, +20.45% YTD
More Insights
According to the company’s financial statements, they are currently facing currency risk from sales, purchases, and borrowings made in currencies other than its main currency, the Naira.
The company faces a net currency risk exposure of $439.98 million, €30.43 million, and CHF 3.35 million, among others.
For the nine months up to September 30, 2023, the company’s pre-tax profit plummeted by 197% year-on-year, showing a pre-tax loss of N56.66 billion in contrast to the N58.39 billion pre-tax profit during the same period in 2022.
This loss was influenced by unrealized FX losses the company faced in Q2 2023.
