Consumer goods market leader, Nestle Nigeria Plc reported a 19.07% YoY revenue growth to N84.18 billion from N70.7 billion recorded in Q2 2020.
The famous Milo producer in its second-quarter earnings report disclosed a profit after tax of N9.33 billion, reflecting a decline of 12.23% from N10.63 billion in the corresponding quarter of 2020. Also, compared to the previous quarter, its net profit declined by N3.07 billion.
The financial statement also revealed that revenue from export during the period declined by 54.76% from N1.68 billion to N757.72 million in the same quarter of 2020, while revenue made from sales in Nigeria was N83.42 billion up from N69.02 billion in 2020.
Net profit for the period was subdued by some expense line items as revealed in the income statement. Interest expense on financial liabilities in the second quarter grew by 269.23%, from the prior-year quarter, influencing the decline in profit before tax and subsequently, net profit for the period.
The interest expense on financial liabilities includes an intercompany loan amounting to approximately N2.30 billion in the period under review, as contained in the financial statement.
During the quarter, other expenses that weighed down the net profit include personnel expenses, general license fees and depreciation.
Nestle Nig Plc operates two segments; namely, Food and Beverages Segments. In the six months of 2021, the food segment of the business has generated more revenue than the beverages segment. The notes to account reveal that the food and beverages segment generated N101.15 billion and N70.29 billion respectively.
The company’s net assets, however, slumped by N6.45 billion from N29.29 billion recorded at the end of 2020 to N22.84 billion by June 2021. Total assets, however, increased by N16.61 billion from year to date.
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