Nestlé Côte d’Ivoire reports 52.3% net profit increase to US$20M

CÔTE D’IVOIRE – Nestlé Côte d’Ivoire has achieved a 52.3% rise in net profit for the first half of 2024, reaching US$20 million, up from US$13.3 million a year earlier. 

The notable rebound represents a promising turn for the company, especially following a 20.6% net profit decline in 2023 due to pressures on both local sales and exports. 

The growth comes amid a challenging economic environment, with high operational costs still affecting the business.

Revenue for Nestlé Côte d’Ivoire hit 116.44 billion FCFA, marking a 17.13% year-over-year increase compared to 99.4 billion FCFA in the same period last year. 

The increase is largely driven by strong domestic sales and sustained export demand, particularly within Sahel countries and Guinea, regions where the company has seen a steady rise in market penetration and product acceptance.

Operating profit grew to 20.91 billion FCFA, a 37.1% boost from the previous year, demonstrating Nestlé’s ability to manage operational efficiency despite persistent inflationary pressures on raw materials.

 Meanwhile, ordinary activities saw a 43.74% increase, resulting in 18.12 billion FCFA. This is a marked improvement from 2023, when the company struggled with high input costs that restrained its profit growth.

 However, a positive turnaround in sales momentum was observed in the latter half of last year, which appears to have continued into the first half of 2024, supporting this year’s optimistic projections.

The improvement in financial performance for the first half of 2024 has raised optimism among stakeholders, as the company previously anticipated a recovery for the second half of 2023 after an improvement in quarterly earnings. 

While Nestlé Côte d’Ivoire did experience marginal growth by the end of 2023, results largely remained stagnant when compared to 2022 figures. This year’s rebound thus represents a critical step in regaining investor confidence.

Nestlé Côte d’Ivoire’s stock has shed 3.93% of its value since the beginning of the year, reflecting last year’s disappointing outcomes. 

However, the current performance boost may positively influence investor sentiment, potentially driving an upward trend in share value as the company continues to report solid growth figures.

Nestlé Côte d’Ivoire’s products are well-known in the Central and West African markets, with popular brands like Golden Morn, Maggi, Ideal Milk, Nido, Milo, Nescafé, Carnation Tea Creamer, Gloria, and Cerelac. 

Given the recent profit growth, the company remains cautiously optimistic about maintaining its positive trajectory in the latter half of 2024, although it acknowledges that external challenges could impact the business.

As part of its strategy, Nestlé Côte d’Ivoire plans to address these challenges by continuing to strengthen its core market presence, investing in product development, and focusing on efficient operational practices that sustain profitability in the face of rising costs.

Subscribe to our food and agriculture industry email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE