Nestle Nigeria Plc, appears to have the worse behind it as first quarter results showed a 69% increase in sales to N61bn, from N36bn in the same period last year.

The company which makes Milo, Nescafé coffee, among others saw a 32% jump in gross profit despite a skyrocketing cost of sales, which grew 105% to N38bn, from N18bn, fueled by inflation and a weakened naira.

According to the company, the surge in revenue is a testament that the company’s brands still enjoy strong patronage from consumers despite the inflationary pressures, weak purchasing power of the consumer and challenging macroeconomic environment. However, the firm said it is important to note that the growth has also
benefited from a lower base in the same period of last year and price increases taken in 2016.

The chocolate drinks maker declared a net profit of N8.4bn, from N6.7bn in the previous year, a 25% increase.

Looking forward, the company said that its board and management remain optimistic about the long term potential of the business despite the current macroeconomic environment. The company will continue to increase investments behind brand and route-to-market activities while proactively managing input cost pressures.