Nestle Nigeria Plc has disclosed a pre-tax loss of N255.38 billion for the first nine months of 2024, primarily driven by a significant rise in finance costs. This represents an increase of N198.73 billion compared to the same period in 2023.
According to the company’s unaudited financial statements for the nine months ending September 30, 2024, released on the Nigerian Exchange Group (NGX), pre-tax losses surged from N56.65 billion in 2023 to the current figure.
Despite the losses, Nestle Nigeria saw its sales in the third quarter of 2024 nearly double, jumping from N81.98 billion in Q3 2023 to N179.31 billion. However, this increase was overshadowed by a dramatic rise in net finance costs, which soared over 160%, climbing from N18.33 billion in 2023 to N50.62 billion in the latest quarter.
The company attributed these escalating finance costs to fluctuations in foreign exchange, resulting from the declining value of the naira. This situation reflects the broader economic challenges that many firms in Nigeria are grappling with under the administration of President Bola Tinubu.
Finance costs typically arise from borrowing by companies, either to fund asset acquisitions or to support investments. The ongoing economic turbulence continues to impact Nestle Nigeria’s financial performance significantly.
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