The economic turmoil in the country is having an adverse effect on the fortunes of many Fast-Moving Consumer Goods companies (FMCGs).
Nielsen Consumer Confidence Index, which is a key measure of the economic health of the country, has seen a significant drop in consumer confidence index in Nigeria due largely to weak macro-economic factors, rising inflation, weakened consumer income, all of which has affected the way consumers feel about the future.
Nestle Nigeria’s second quarter (Q2) 2015 profit declined by 24.9 percent as competition in the marketplace and a weak consumer spending continues to haunt the consumer products company. The company is also beset by the insecurity in the north of the country, and higher borrowing costs, among others.
Nestlé’s profit for the period under review was N8.887bn, compared with N11.836bn from the prior year. Sales also fell to N65.92bn, from 67.2bn in the preceding year, a 1.9 percent decline.
