By Chris Onuoha

For Nestlé Nigeria PLC the year 2022 seems to have a clean start as the foremost food and beverage producing company discloses its financial results for the first quarter of 2022 showing an upward push against the previous year.

This indicates that the first quarter results which ends on March 31, 2022 with its marginal increase signifies the companies effort in utilising its marketing strategies and pushing ahead for greater results despite the effects of the global food security challenges caused by many factors that include the covid-19 pandemic crises, insecurity in the country and perhaps, climate change that affected the value chain sector.

However, Nestle Nigeria PLC, on a strong footage, is poised to weather all odds to remain afloat in business. These, according to the financial result of the first quarter of the year 2022 as reviewed and approved by the Board are indications of good business for the food and beverage producing company.

Nestle recorded revenue of N 110.2 billion against N 87.3 billion during the same period in the previous year, showing a top-line growth of 26.3 percent. Profit after tax for the period stood at N 18.0 billion according to the unaudited financial statements of the Company.

A breakdown of the results shows that January to March, 2022 recorded revenue of N 110,225,400 against N 87,257,701 garnered in January to March, 2021. Cost of Sales stood at N 66,982,527 for year 2022 in review against N 52,514,964 recorded the previous year while gross profit stood at N43,242,873 against N34,742,737 of the year 2021.

Meanwhile, Marketing and Distribution recorded an expenses of N14,224,472 against N11,109,209 in the year 2021, while the Administrative expenses was at N2,615,747 less than N3,319,315 recorded in the previous year.

Results from operating activities stood at N 26,402,653 against N 20,314,212 in 2021. Finance income was at 3,457,949 in the year 2022 against N 123,340 less in the year 2021. Also, finance costs were at N 2,008,614 against N 1,435,121 of the previous year, while Net finance costs of N 1,449,335 were recorded against a slight margin of N 1,311,781 in the year 2021.

The profit before income tax stood at N 27,851,989 for the year 2022 against N 19,002,430 recorded in 2021 as Income tax expense stood at N 9,871,920 against N 6,602,429 of the previous year. However, profit for the period in review stood at N 17,980,068 against N 12,400,001 made in 2021.

Commenting on the results, the Managing Director and CEO of Nestlé Nigeria PLC, Mr. Wassim Elhusseini said, “On behalf of the management and staff of Nestlé Nigeria PLC, I am delighted to present this impressive performance of our company in the first quarter of 2022. I commend the efforts of the entire team at Nestlé Nigeria PLC, for continuing to thrive under the current difficult business environment.

We know that the global economic situation and supply chain disruptions will continue to put more pressure on the already challenging business environment. However, we remain optimistic that we can continue to improve our business by empowering our people and ensuring continued supply of essential nutritious food and beverages to consumers.

We will continue to focus on these two important areas while caring for our communities and business partners, and all collaborators across our value chains to sustain this growth throughout the year.”