Arising from the foreign exchange losses recorded at the end of 2023 due to the depreciation of naira, Nestlé Nigeria PLC has undertaken a strategic revaluation of its fixed assets.
It would be recalled that Nestle recorded a loss before tax of N104 billion for the year ended 2023 compared to a profit before tax of N71 billion in the same period in 2022.
Nestle stated that the revaluation aims to provide a more accurate representation of the company’s financial health and asset value.
The company’s board disclosed that its property, plant, and equipment (PPE), previously recorded at historical costs, will now reflect their fair market value.
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This was due to the fact that the assets were listed at cost less accumulated depreciation and impairment losses.
The evaluation covered key facilities including the Agbara Factory in Agbara, the Flowergate Factory in Sagamu, the Abaii Factory in Abuja, and distribution centers in Agbara and Ota.
The valuation, which assessed the market value of land, buildings, and plant and machinery as of March 16, 2024, concluded a total market value of N305.4 billion, a significant increase from the previous carrying values recorded at the end of 2023 and February 2024.
The revaluation has increased the market values of it’s assets with land moving from N1.2 bn to N14.8 bn; buildings from N28.5 bn to N51.3 bn;
Plant and Machinery from N58.5 bn to N238.9 bn bringing the value of its assets from N88.3 billion to N305.4 billion.