According to reports, Nestle Nigeria’s revenue from exported goods decreased by N1.76 billion (87.3%) from January to March 2023.
The company manufactures food products such as Maggi, Cerelac, Nan, Lactogen, and Golden Morn in addition to beverage goods such as Milo, Chocomilo, Nescafe, Milo ready-to-drink (RTD), and Nestlé Pure Life.
According to reports, these products garnered N256.60 million in export revenue in the first quarter (Q1) of this year, falling short of the N2.02 billion exported during the same period in 2022.
Sales in Nigeria, which brought in N127.71 billion in revenue during the first quarter of 2023 as opposed to N108.19 billion during the same period the previous year, saved Nestle Nigeria’s top line from suffering a severe 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.
After posting a profit after tax of N16.20 billion in the first quarter of 2023, Nestle saw a -10% reduction in the company’s net profit, falling short of the N17.98 billion net profit reported in Q1 of the previous year.