Nestle Nigeria’s profit falls 15% as COVID-19 hits operations

Nestle Nigeria Plc, a food manufacturing and marketing company, has posted a profit before tax of N60.64 billion for the 2020 financial year, down 15 percent from the N71.12 billion reported in 2019.

Its profit after tax fell to N39.21 billion last year from N45.68 billion in 2019, its annual report and financial statement obtained by Markets Reporters on Saturday showed.

The company’s revenue, however, rose slightly to N287.08 billion in 2020 from N284.03 billion a year ago.

Nestle Nigeria said the COVID-19 pandemic took a toll on its operations last year, although all manufacturers in the food and beverage sector were classified as essential services and excluded from the lockdown.

The company said it encountered challenges with the availability of key raw and packaging materials, including sugar.

It said, “The prices of some materials increased exponentially while access to foreign exchange for the importation of key items became more restricted. Heightened insecurity compelled some of our distributors to shut down.

“The closure or partial closure of key markets and the lack of patronage at the make-shift markets opened by some state governments also put pressure on the business during the period.”

The company said thanks to the resilience of its team, it managed to keep its factories open and operational despite the challenges.

“We also kept our people safe and motivated by working together to put in place and adhere to the recommended COVID-19 preventive measures,” it added.