Nestlé Nigeria Plc has made an early repayment of $20 million in inter-group foreign exchange debt, reflecting the company’s commitment to financial discipline amidst ongoing economic challenges.
In a release filed on the Nigeria Exchange on Thursday, Nestlé confirmed the repayment, which was made ahead of schedule. This comes as the company continues to navigate the impact of currency devaluation, inflation, and rising finance costs that have affected its financial performance in the past year.
Speaking on the development, the Managing Director and Chief Executive Officer of Nestlé Nigeria, Wassim Elhusseini, said, “Our ability to make an early payment of $20m on our forex obligations underscores the strength of our financial discipline and our commitment to reducing exposure to currency volatility. Despite the economic headwinds, we continue to make strategic investments and optimise our operations to ensure long-term value creation for our stakeholders.”
Earlier, the company had reported a return to profitability in its fourth-quarter results, posting a profit after tax of N19.7 billion for Q4 2024, compared to a loss of N36.4 billion in the same period of 2023. This recovery was driven by a 95% increase in total revenue to N293.5 billion and a 77.1% growth in operating profit to N57 billion for the quarter. For the full year 2024, Nestlé Nigeria’s revenue surged by 75.2% to N958.8 billion, while operating profit increased by 35.6% to N167.9 billion.
However, the company reported a total comprehensive loss of N14.6 billion, primarily due to high finance costs arising from the depreciation of the naira.
Despite these challenges, Nestlé Nigeria has continued to invest heavily in its operations, committing N132 billion since 2023, with N72 billion spent in 2024 alone to expand capacity and improve operational efficiency. The company also increased its workforce by 8% to support growth across its portfolio.
According to the release, the early payment of the forex debt is expected to strengthen the company’s financial position by reducing interest expenses and forex-related risks.
Looking ahead, Elhusseini reaffirmed the company’s commitment to operational efficiency, saying, “Our investments in capacity expansion, workforce development, and product innovation will position us for sustained growth. We remain focused on navigating economic challenges while continuing to deliver value to our consumers and shareholders.”
The chairman of Nestlé Nigeria Plc, Gbenga Oyebode, was quoted in The PUNCH, stating that the foreign exchange loans from its parent company, Nestlé S.A. Switzerland, were necessary to keep the company running amidst the fluctuating foreign exchange environment.