February 28, 2025/CSL Research

Financial Highlights:

• Revenue +75.2% y/y to N958.82B
• Cost of Sales +97.7% y/y to N652.46B
• OPEX +48.4% y/y to N139.22B
• EBITDA +45.3% y/y to N196.82B
• Operating Profit +35.6% y/y to N167.88B
• Loss before Tax +113.0% y/y to N221.59B

In its recently released FY 2024 results, Nestle Nigeria Plc. (Nestle) reported a 75.2% y/y Revenue growth to ₦958.82 billion from ₦547.12 billion in FY 2023. On a quarterly basis, Revenue also grew by 13.6% q/q, reaching ₦293.53 billion in Q4 2024 compared to ₦258.32 billion in Q3 2024. We attribute the Revenue growth to increases in both sales volumes and prices.

Across operating segments, Revenue from Nestle’s food segment (production and sale of maggi, cerelac, nan, lactogen, golden morn and energy snacks) advanced by 74.3% y/y to ₦616.47 billion from ₦353.70 billion in FY 2023. This segment accounted for about 64.3% of total Revenue in FY 2024 compared to 64.6% in FY 2023.

Revenue from the beverage segment—including the production and sale of Milo, Milo Energy Cube, Nescafé, Milo Ready-to-Drink, Nestlé Pure Life, and Coffee Ready-to-Drink—reached ₦342.34 billion in FY 2024. This accounted for 35.7% of total revenue, marking a 77.0% y/y increase from ₦193.42 billion in FY 2023, when it contributed 35.4% of overall revenue. Domestic sales grew by 74.4% y/y to ₦952.24 billion, up from ₦545.94 billion in FY 2023, while export sales surged by 455.8% y/y to ₦6.57 billion, compared to ₦1.18 billion in FY 2023. The sharp rise in export sales was driven by the depreciation of the domestic currency and the expansion of sales into Cameroon.

Nestlé’s annualized asset turnover rose to 1.12x in FY 2024, up from 0.94x in FY 2023. This increase reflects improved asset utilization for revenue generation, supported by price adjustments aimed at mitigating margin deterioration amid rising costs.

Stock Rating: HOLD, Target Price: N981.33/s

To read full report, click on the link below​​

​​​NESTLE FY 2024 Quick Take.pdf​​​​​​​

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