ABUJA, (CAJ News) – NESTLE Nigeria, the health and wellness company, has reported a loss before tax and loss after tax of N7,8 billion and N6,2 billion respectively in the second quarter of 2016.
This is despite an impressive sales growth of 16 percent year-on-year.
Sales grew by 30 percent year-on-year grew by 30 percent in the first quarter.
The losses were mainly driven by a significant rise in finance expenses as a result of a foreign currency revaluation of the firm’s loan book following the recent introduction of a flexible forex policy by the Central Bank of Nigeria.
Sequentially, while sales grew by 23 percent quarter-on-quarter.
Analysts attributed the loss to intense competition in the sector and shortage of gas supplies due to disruptions in the Niger Delta region, which had led to an increased reliance on more expensive fuel alternatives.
Additionally, prices have generally increased for production inputs such as grains, sugar and milk.
– CAJ News