By InvestAdvocate
Lagos (INVESTADVOCATE)-Food and beverage producer, Nestle Nigeria Plc on Thursday said its profit for the year declined 94 percent to N536 million in its first-half (H1) period ended June 30, 2016 compared to N8.88 billion a year ago.
Similarly, pretax profit for the food and beverage company dipped 92 percent to N896.4 million from N10.61 billion posted the same period of 2015.
However, revenue of Nestle Nigeria climbed up 22 percent to N80.4 billion from N65.9 billion declared a year earlier.
“We are pleased that our revenue increased by 22 percent in the first half of 2016 despite the tough economic environment. In both the first and second quarters of 2016, our revenue grew by double digits, thereby confirming the great value that our brands provide consumers.
The increase in the cost of sales was mainly due to higher material costs resulting from currency devaluation. Operating Profit for the period has increased by 10 percent despite pressure on input costs.
Net profit has been negatively impacted by the revaluation of the foreign loans due to Naira devaluation. The board and management will continue to implement necessary measures and cost saving initiatives to address the macroeconomic challenges and remain fully committed to the long term potential of the business in Nigeria,” the food and beverage producer said in a statement to the Nigerian Stock Exchange (NSE).
