Nestlé Nigeria reported that its liabilities loomed past assets by N78.1 billion (13.4 per cent) last year after a free slide in the value of the naira-stressed operations.
The development threw the company into record loss, according to its audited accounts published on Wednesday.
Total liabilities for 2023 accelerated to N659.8 billion from N384.8 billion a year ago in reaction to a monumental surge in foreign exchange loss.
Fellow multinational PZ Cussons Nigeria made a disclosure of a similar nature last week, where it declared a negative net asset position of N23.2 billion, a mark of record hard times for foreign companies in Nigeria, where inflation is near its 30-year peak and the dollar is barely available for businesses.
Following the woes that the storm has caused, Nigeria is seeing a continued flight of international companies including Procter & Gamble as well as GSK – maker of Ribena, Panadol and Sensodyne – away from its shores.
Loans denominated in US dollars constituted more than 60 per cent of Nestlé Nigeria’s total liabilities, during a year when the naira shed half of its value against the currency.
It means the consumer goods giant’s debts shot to N402.3 billion from N155.3 billion within a year when converted into local currency.
Credit: premiumtimesng.com
