Between January and March 2023, Nestle Nigeria’s revenue from exported goods decreased by N1.76 billion, or 87.3%.
In addition to food products including Maggi, Cerelac, Nan, Lactogen, and Golden Morn, the firm manufactures beverages like Milo, Chocomilo, Nescafe, Milo ready-to-drink (RTD), and Nestlé Pure Life.
According to information acquired, these products earned N256.60 million from export in the first quarter (Q1) of this year, falling short of the N2.02 billion received from export in the same period in 2022.
Sales in Nigeria, which produced N127.71 billion in revenue in Q1 2023 compared to N108.19 billion in the same period last year, saved Nestle Nigeria’s top line from suffering a major decline.
Nestle recorded a total revenue of N127.97 billion for the first quarter of this year, a 16% increase over the N110.22 billion total revenue generated in the first quarter of the previous year.
The company’s Unaudited Financial Statements for the period ending March 31, 2023, which were acquired on Friday, included this information.
Despite a 16% increase in total income, Nestle lost much of this to product production costs, which ate up 60% of the company’s revenue from January to March 2023.
Among other products, Nestle spent N76.31 billion to make Milo, Maggi, Nescafe, Golden Morn, and Nestle Pure Life during the year under review. In comparison to the cost of sales reported in 2022, this is N9.33 billion greater.
Nestle recorded a profit after tax of N16.20 billion in the first quarter of 2023, which was less than the N17.98 billion net profit reported in Q1 of the previous year and resulted in a -10% reduction in the company’s net profit.