Nestlé Nigeria Plc saw its revenue swell by more than one-fifth to N171 billion at half year in a period it also faced a modest drop in profit, brought about by record inflationary pressure in Africa’s largest economy.
The local unit of the Swiss-based food company achieved the growth from higher earnings of N169.3 billion from its Nigerian market, according to its unaudited financial report issued Wednesday, with the rest N2.2 billion from exports to outside the country.
But earnings were limited by a jump of as much as 30.9 per cent to N105 billion in cost of sales just as the cash committed to marketing and distribution climbed to N23.492 billion. That compares with the N19.9 billion posted in the corresponding period of last year.
Also eating away at earnings was the firm’s finance expense, the amount spent on servicing short term debt, which leapt by almost three fold to N3.4 billion from N86 million.
Nestlé Nigeria used N2.30 billion of that sum for interest payment on a loan taken from an unnamed sister company under the Nestlé group, itself the world’s biggest food company, the document seen by PREMIUM TIMES showed.
Pre-tax profit eased 1.43 per cent to N33.379 billion, while profit for the period stood at N21.732 billion, shedding 0.43 per cent.
Shares in Nestlé are currently at their 52-week peak of N1,540 per unit and closed trade in Lagos on Wednesday without recording any movement.
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