Nestle Nigeria Plc has released its Q2-24 unaudited results, reporting a lower loss per share of N43.18, compared to N83.50 in Q2-23.
Despite a 67.0% year-on-year increase in revenue, driven by strong demand for its food and beverage products, the company’s performance was undermined by a substantial increase in costs of sales, which rose by 85.9% year-on-year.
The company’s gross profit margin contracted by 661 basis points year-on-year to 35.0%, due to inflationary pressures on domestic food prices.
Operating expenses also increased by 53.7% year-on-year, leading to a contraction in EBITDA and EBIT margins.
However, the company reported a 21.8% year-on-year decrease in net finance cost, driven by a decline in exchange loss.
The company recorded a lower pre-tax loss of NGN56.44 billion in Q2-24, resulting in a loss after tax of NGN34.23 billion.