The company disclosed this in its financial results for Q1 on Tuesday.

The naira depreciated from N988.46 against the dollar on January 2, to N1,309.39/$ on March 28 at the official market.

According to the company’s financial statement, sales grew by 43.4 percent to N183.5 billion, compared to N127.97 billion in the same period last year.

“Gross profit was N49.1 billion vs. N51.6 billion in the same period of 2023. Operating profit stood at N20.9 billion,” the company said.

“Further devaluation of the naira in Jan-March 2024 led to the revaluation of our foreign currency obligations, which had an adverse impact on the profit after tax, resulting in a net loss of -N142.7 billion for the quarter.”

Commenting on the results, Wassim Elhusseini, chief executive officer (CEO) of Nestlé Nigeria, said the business environment was challenging in the first quarter.

“Our first quarter sales reflect a positive growth momentum despite a challenging business environment,” Elhusseini said.

He said, looking ahead to the rest of the year, Nestle Nigeria’s focus remains on optimising operations to ensure the availability and accessibility of its products.

In its 2023 operations, Nestle Nigeria reported a net loss of N79 billion from the 2023 operations.

Also, huge net foreign exchange (FX) losses of N195 billion wiped off the company’s capital base.

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This investigation was carried out by the Public Eye, a Swiss investigative organisation, in collaboration with the International Baby Food Action Network, a coalition focused on improving maternal and infant health.

The findings, published Wednesday, show that a global food company based in Switzerland adds sugar and honey to infant milk and cereal products sold to Nigeria and other countries such as India, Brazil, and the Philippines, contrary to international guidelines.

Samples of Nestle’s baby food products sold in Asia, Africa, and Latin America were sent to Belgium for laboratory testing.

According to the report, while baby formulas sold in Europe for children aged 12–36 months contained no sugar, formulas sold in lower-income countries contained a significant amount.

But efforts to get the reactions of both Nestle in Nigeria and the country’s food regulator, the National Agency for Food and Drug Administration and Control (NAFDAC), were unsuccessful.

While regular calls made to the company’s Head of Corporate Affairs, Victoria Uwadoka, did not connect, those made via WhatsApp rang out as she did not pick.

She, however, later replied to a message sent to her WhatsApp line, requesting that an email be sent to an address she provided. But an automatic reply to the mail sent by our reporter indicated that her response may be delayed.

“Thank you for your email. I am out of office with very limited access to email. Please expect a delayed response,” the message reads.

Meanwhile, the phone number of the Director General of NAFDAC, Mojosola Adeyeye, a professor, was also not available.

Guidelines on infant food

WHO has consistently warned that baby foods with high levels of sugar are not suitable for infants under the age of six months to prevent obesity, chronic diseases and an addiction to sweeteners.

“The first two years of a child’s life are particularly important, as optimal nutrition during this period lowers morbidity and mortality, reduces the risk of chronic disease, and fosters better development overall,” it said.

The organisation’s European region guidelines prohibit adding sugars or sweetening agents to food for children under three. Although there are no specific guidelines for other regions, the guide for EU regions is believed to apply to countries worldwide.

Nestle, however, has been violating these recommendations by adding a significant quantity of sugar into its products available in Nigeria and other low-income countries.

Sugar content high in Nigeria Cerelac

According to the report, Cerelac from Nigeria had the second-highest sugar content, with 6.8g per serving. The country closely follows the Philippines, which has 7.3g.

The report said, “On average, our analysis found almost 4 grams per serving or about one sugar cube.”

Other countries on the list are Senegal, with 5.9g; Vietnam, 5.49g; Ethiopia, 5.2g; and South Africa, 4.2g.

The highest sugar content was found in Panama samples, at 5.3g per serving. Then came Nicaragua 4.7g; Mexico 1.8g; Costa Rica 1.6g; South Africa 0.9g; and Indonesia 0.7g.

“For Nestlé, not all babies are equal when it comes to added sugar. While in Switzerland, where the company is headquartered, the main infant cereals and formula brands sold by the multinational come without added sugar, most Cerelac and Nido products marketed in lower-income countries do contain added sugar, often at high levels,” the report said.

Often, the report noted, the amount of added sugar is not even disclosed in the nutritional information available on the packaging of these kinds of products.

Sugar-induced diseases in low-income countries

In 2019, WHO raised the alarm on the rise of non-communicable diseases such as cardiovascular disease, cancer and diabetes in low- and middle-income countries.

The increased consumption of ultra-processed foods, often high in sugar, was singled out as one of the leading causes of this epidemic.

Also, in Africa, the number of overweight children under five has risen by nearly 23% since 2000, and obesity remains a growing problem.

Public Eye states, “Nestlé must put an to end these dangerous double standards and stop adding sugar in all products for children under three years old, in every part of the world.”

Further findings

The investigation also uncovered Nestle’s use of medical professionals and health experts to promote its products despite failing to meet the standard guidelines.

It said using professionals in white coats leads parents to believe eminent scientific authorities endorse these products.

“Nothing can justify the double standards highlighted by the Public Eye and IBFAN investigation.

“If Nestlé truly intends to act responsibly, it must follow the recommendations and guidelines of the WHO and stop getting babies and young children hooked on sugar, regardless of the country in which they were born,” the report read.

The Swiss multinational baby food company has operated in Nigeria for decades and established a strong market presence.

In 2022, the Chief Executive Officer of Nestle Nigeria Plc, Wassim El-Husseini, said that the country consumes 25 per cent of its global fortified food and beverages, estimated at $16. 2 billion.

Mr El-Husseini said, “Central West Africa Region is so important for the Nestle group because we produce and consume 44 per cent of the global population, of which Nigeria is more than half of it. So, we are more than 25 per cent.”

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Nestlé Nigeria Plc has trimmed its loss position to N43 billion at the end of the third quarter from roughly N50 billion at half year.

The improvement follows a profit of N6.9 billion the company posted in its third quarter operations, swinging up from a net loss of N58.7 billion incurred in the second quarter but yet down from a corresponding profit of N12.4 billion last year.

The unaudited financial report of the food and beverages producing company for the third quarter ended September 2023 shows that it is yet under pressure from foreign exchange losses that grew further from N123.8 billion at half year to N127.5 billion at the end of the third quarter.

A slowdown in foreign exchange losses combined with a step up in sales revenue to return the company to profit in the third quarter. Turnover stepped up from 19.2 percent growth in the second quarter to 21.4 percent to N134.8 billion for the third quarter.

Production cost slowed down at an increase of 10.9 percent to less than N82 billion for the quarter, which powered an increase of 42.5 percent in gross profit to N52.8 billion for the three months of trading.

The company also saved cost from marketing/distribution and administrative expenses, which enabled an impressive growth of 64.7 percent in operating profit to N30.8 billion for the third quarter.

Finance expenses, driven by foreign exchange losses, jumped nine times to N18.8 billion in the quarter and claimed more than all the gains in operating profit.

Added to that is an upsurge of 147.8 percent jump in tax expenses to N5.6 billion for the quarter, which slashed a pre-tax profit of N12.4 billion for the quarter to a net profit of N6.9 billion.

Nestle Nigeria’s year to date numbers show a turnover of N396.6 billion at the end of September 2023, which is an improvement of 18.9 percent.

The gain in sales is supported by a slowdown in production cost – which grew by 9.4 percent – one half the increase in sales. The cost saving spurred an increase of 36.6 percent in gross profit over the period to N160.2 billion.

Pressure however mounted from marketing and distribution cost – which grew only slightly below sales revenue at 35.7 percent to N236.4 billion at the end of the third quarter.

This is however a significant slowdown from a rise of over 42 percent in marketing and distribution cost at half year and from more than two and a third times faster growth than sales revenue at the end of June 2023.

With a moderated increase in administrative expenses at N9.7 billion, operating profit rose by 41.2 percent to N91.6 billion at the end of the third quarter.

A lot of strength was gained from finance income, which jumped more than three times year-on-year to N8.3 billion at the end of September 2023.

However, all the operating profit and the finance income emptied into the deep hole of N156.5 billion finance cost, more than 17 times the finance expense of N9 billion in the same period last year.

The increase in finance cost created a pre-tax loss of N56.7 billion at the end of the third quarter against a pre-tax profit of N58.4 billion in the same period in 2022.

An income tax credit of N13.6 billion was recorded, which lowered the net loss figure to N43 billion for Nestle Nigeria at the end of the third quarter.

Apart from foreign exchange losses, finance cost has presented a major pressure on earnings so far this year. Rising finance expenses have followed rising debts – which led to falling profit right from the first quarter.

Nestlé’s interest bearing debts have expanded from about N155 billion at the end of 2022 to N320.4 billion at the end of the third quarter.

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The company, which made the assertion as it joined the rest of the world to celebrate the 2018 World Environment Day (WED) on Tuesday, said it was part of its pledge to play an active role in combating plastic pollution.

“The company aims to help consumers dispose of used materials in the right way, while promoting a market for recycled plastics by continuing to increase the proportion of recycled plastics in its packaging.

“This vision — for none of its packaging, including plastics, to end up in landfill or as litter — is global in vision but local in execution,” it said in a statement by its Corporate Communications and Public Affairs Manager, Victoria Uwadoka.

On waste management solution in Ghana and Nigeria, it said that Nestlé was looking to develop the well-organised collection, sorting and recycling schemes across all countries where it operated.

In Central and West Africa, Nestlé is supporting the Ghanaian government’s efforts to better manage plastic waste, as one of eight founding members of the Ghana Recycling Initiative by Private Enterprises (GRIPE).

“As part of this coalition, Nestlé is working with other major industrial companies including Unilever and Coca-Cola, to integrate sustainable waste management solutions and advocate for improved waste management practices in Ghana.

“With a population of more than 28 million, the country has one of the fastest-growing economies in the world today, but has a severe and fast-growing waste management problem.

“The coalition’s main aims include: contributing to increased collection and recycling rates across the country, provide employment opportunities through scalable recycling solutions, and engaging with the government to help tackle the problem of plastic waste.

“In Nigeria, Nestlé is one of the five member companies of the Food and Beverage Recycling Alliance (FBRA) incorporated to serve as the sector Producers Responsible Organisation under the Extended Producers (EPR) scheme, the statement said.

It noted that the alliance had completed the development of a viable collection and recycling plan with initial focus on the major food and beverage packaging materials that posed significant challenge for the Nigerian national waste management system.

The company said that its efforts to help address this issue highlight the importance of the United Nations’ World Environment Day on June 5, a global day of action that promoted worldwide awareness for the protection of our environment.

“This year is dedicated to the theme, `Beat Plastic Pollution’.
“Nestle urges us all to make changes to our everyday habits to reduce the serious impact of plastic pollution on our environment,’’ it said.

According to the United Nations Environment Programme (UNEP), half of all consumer plastics are single use, one tenth of all human-generated waste is plastic, and in the next 10-15 years, global plastic production is projected to nearly double.

The UNEP is asking individuals, the private sector and policymakers to come together to entirely rethink our approach to designing, producing and using plastic products.

On zero environmental impact, it said: “As a Group, Nestlé’s overarching ambition is to strive for zero environmental impact in its global operations by 2030, as part of the company’s purpose to enhance quality of life and contribute to a healthier future.

“Five out of seven Nestlé factories in Central and West Africa Region have zero waste to landfill.

“We have also started initiates to recycle Maggi wrappers. Nestlé has also set clear commitments and objectives to use sustainably managed and renewable resources, operate more efficiently, achieve zero waste for disposal and improve water management.

“The company also continues to actively participate in initiatives that reduce food loss and waste, and preserve our forests, oceans and biodiversity,’’ the statement said.

Nestlé Nigeria Plc began simple trading operations in Nigeria in 1961 and has grown into a leading food manufacturing and marketing company.

The company is now the biggest food company in West Africa. And employs around 2,400 people and has three world class factories.

Nestlé Nigeria manufactures and markets a range of high quality brands including: NESTLE PURE LIFE, GOLDEN MORN, MILO, KITKAT, MAGGI, NESCAFÉ, NIDO.

The post We’ll make our packaging 100% re-usable by 2025, says Nestle appeared first on New Mail Nigeria.

The ten count criminal charge number FHC/L/478C/15 was filed before a Federal high court in Lagos by the Police Legal Officer from Force Criminal Investigation Department, Force Headquarters, Abuja.

According to the charge, Dayanand Thandalam Siram, Jonathan Murray, Uche Uwechia, Glaxosmithkline Consumer Nigeria PLC and others now at large between October 2014 and October 2015, induced the citizens of Nigeria to buy their products using the gimmicry of “LUCOZADE AND RIBENA BIG CASH GIVE AWAY”.

The accused were also alleged to have established and keep the premises of GSK HOUSE 1,Industrail Avenue, Ilupeju, Lagos as a place for the purpose of lottery to be used for the purposes of obtaining by false pretence from the Nigerian populace.

The offence alleged to have been committed by Glaxosmithkline Consumer Nigeria Plc and its officials are contrary to and punishable under section(1)3 of the advance fee fraud and other related offences Act laws of the Federation of Nigeria.

It was also alleged that, Rahul Culaco, Omolara Banjoko, Adebayo Elegbe, Shelewa Ashimi, Friesland Campina Wamco Nigeria Plc, same time and place used the premises of their company for the purpose of obtaining by false pretence from the Nigerian Populace.

The case has been adjourned till next month when all the accused and their company will be arraigned before the court.

In a separate development, Nigeria has filed another ten count criminal charge of sponsoring fake promo against Nestle Nigeria Plc and two of his officials

In the said criminal charge FHC/ L/477C/15,It was alleged that GORD HON,BEEBEE AYEKU,NESTLE NIGERIA PLC between October,2014 and October,215 induced citizens to buy their product in the guise of lottery captioned “YEAR -END SHOPPERS BAG PROMO. Participants were assured of winning prizes.

An affidavit by a deputy superintendent of Police,Gyu Musa, attached to the police enforcement unit team of the National Lottery Regulatory Commission, Abuja, averred that investigation in respect of the case has been concluded and all major documentary exhibits required for the prosecution of the case has been obtained except the arrest of certain persons.

Musa said prima facie case of obtaining by false pretences and lottery offences have been established against the accused persons on record.

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A statement sent to New Mail on Wednesday by Sam Adenekan, Corporate Communications and Public Affairs Manager, Nestlé Nigeria Plc, in connection with an earlier story reported by New Mail said that the workforce cuts by Nestlé in Africa do not concern Nestlé Nigeria and indeed not Nestlé Central and West Africa Region (CWAR).

“The cuts only concern Nestlé Equatorial Africa Region (EAR). The restructuring process was carried out in January 2015 after a careful internal assessment to ensure efficiency and effectiveness and to adapt the structure to the evolution of the environment.

Adenekan said that the rationalisation has only affected around 60 people across five countries, out of a total of 21 countries in the Equatorial Africa Region.

“There are four factories in the region and these were not affected. The Equatorial African Region (EAR) accounts for 10 – 15 percent of Nestlé’s business in Africa. There has been a seven percent reduction in our workforce in EAR.

In Africa, Nestlé employs 11,000 people.

Adenekan said that Nestlé has been present in Central and West Africa since the 1950s.

“Today, it directly employs more than 6,600 employees in the region and operates in 22 countries, has 13 operating companies and runs seven factories. More than 85 percent of the products sold in the region are produced locally,” he said.

Adenekan said that Nestlé CWAR remains committed to the region and has invested CHF 645 million over the last five years. This demonstrates our confidence that the region will continue to grow.

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