Nestle Nigeria’s profit fell by 76% in 2016

Nestle

Nestle Nigeria plc, Nigeria’s largest producer of cocoa-based beverages is reporting one of the poorest reports in the last five year.

The company’s net profit fell by 67% to NGN7.9 billion compared to NGN23.7 billion profit in the financial year 2015.

On a good note, its revenue for the year rose to NGN181.9 billion in 2016 versus NGN151.2 billion recorded in 2015.

However, the gain was reduced as its costs of sales rose to NGN106.5 billion compared to NGN83.9 billion recorded in 2015.

Gross profit rose to NGN75.6 billion for third quarter 2016 compared to NGN67.3 recorded same quarter 2015. However, the company’s books starts showing red when you look at its loss before tax of NGN21.5 billion. In the previous year, Nestle booked a profit before tax of NGN29.3 billion.

Nigeria plc acquired total assets of NGN169.5 billion in 2016 compared to NGN119.2 recorded same period 2015. The company posted total liabilities of NGN138.7 billion compared to NGN81.2 billion recorded in 2015.

The company recorded operating profit of NGN38.2 billion in 2016 compared to NGN33.7 billion in 2015.