Q3 2022: Nestle Nigeria reports 19.7% drop in pre-tax profits

Nestle Nigeria Plc released its 2022 Q3 results last week Friday, reporting a pre-tax profit of N14.6 billion representing a 19.7% drop from the N18.2 billion reported same period in 2021. 

Revenue

2022 Q3: N111 billion 

2021 Q3: N90.1 billion

Change: +23.1%

Gross Profit

2022 Q3: N37 billion 

2021 Q3: N34.8 billion

Change: +6.3%

Operating profit

2022 Q3: N18.6 billion 

2021 Q3:  N19.7 billion

Change:  -5.5%

Net Finance cost

2022 Q3: N4 billion 

2021 Q3:  N1.5 billion

Change:  +166%

Pre-tax profit

2022 Q3: N14.6 billion

2021 Q3:  N18.2 billion

Change:  -19.7%

Cash in hand

2022 Q3: N107 billion

2021 Q3:  N100.5 billion

Change:  +6.4%

Bottom line: The drop in pre-tax profits was a result of higher operating expenses and higher net finance costs. It wiped out most of the growth recorded from revenues during the quarter.