N195bn FX loss wipes off Nestlé Nigeria's capital base -- first in years

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N195bn FX loss wipes off Nestlé Nigeria's capital base -- first in years
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Nestlé Nigeria Plc rolled in a net loss of N79 billion from the 2023 operations, as huge net foreign exchange losses of N195 billion wiped off the company’s capital base and dug a hole of N78 billion in the balance sheet.

Further pressure mounted from interest expenses on the company’s enlarged borrowings. Finance expenses tripled to N38.4 billion at the end of the year.Interest-bearing debts jumped more than two and half times from N155.3 billion in 2022 to N402.3 billion at the end of 2023. Sales revenue grew by 22.5 percent to N547.1 billion at the end of the 2023 operations, which means additional earnings of N100.3 billion was raked in in the year.

The cost increases were diluted by a net write-back of financial assets impairment of N483.2 million – which advanced from a net charge of N29 million in the preceding year.

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