Nestle Nigeria’s export revenue falls by N1.76 billion, cost gulps 60% of turnover

Nestle Nigeria’s revenue from exported products fell by N1.76 billion or 87.3 per cent between January to March 2023, Ripples Nigeria has learnt.

The company is the producer of beverage goods; Milo, Chocomilo, Nescafe, Milo ready-to-drink (RTD) and Nestlé Pure Life, as well as food products; Maggi, Cerelac, Nan, Lactogen and Golden Morn.

Ripples Nigeria gathered that these products earned N256.60 million from export in the first quarter (Q1) of this year, failing to surpass the N2.02 billion generated from export in the same period in 2022.

Nestle Nigeria’s top line was rescued from a significant drop by sales in Nigeria, which grossed N127.71 billion in revenue in Q1 2023, in contrast to the N108.19 billion generated in the first three months last year.

In total, Nestle reported a turnover of N127.97 billion in Q1 this year, which is 16 per cent higher than the N110.22 billion total revenue grossed in Q1 of the preceding year.

This was obtained from the company’s Unaudited Financial Statements for the period ending March 31, 2023, obtained on Friday.

Despite growing its total revenue by 16 per cent, Nestle lost much of this to the cost of producing the company’s products, as cost gulped 60 per cent of the firm’s turnover between January to March 2023.

Nestle spent N76.31 billion to produce Milo, Maggi, Nescafe, Golden Morn, Nestle Pure Life, amongst others in the review period this year. This is N9.33 billion more than the cost of sales posted in 2022.

At the end of the first quarter period in 2023, Nestle was left with a -10 per cent decline in the company’s net profit, after recording N16.20 billion in profit after tax, falling short of the N17.98 billion net profit reported in Q1 last year.

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