(Ecofin Agency) - Nestlé Côte d'Ivoire recovers from last year's losses. Fueled by increased local sales and exports, the multinational is returning to growth, despite a challenging environment and ongoing pressure on costs.

Nestlé Côte d'Ivoire, a subsidiary of the Swiss group Nestlé, announced a remarkable 52.3% increase in its net profit for the first half of 2024. The net profit rose to CFA12.36 billion (about $20 million), up from CFA8.11 billion the previous year. This growth marks a significant recovery for the company, which had seen a 20.6% drop in net profit in 2023 due to challenges in local sales and exports.

For the first half of 2024, Nestlé CI reported revenue of CFA116.44 billion, reflecting a 17.13% increase compared to CFA99.4 billion in the same period last year. This boost is linked to stronger local sales and sustained demand in export markets, particularly in Sahel countries and Guinea.

In 2023, the company faced the impact of rising raw material prices, which limited sales growth. However, Nestlé Côte d'Ivoire began to see improvements in the second half of that year, a trend that has continued into the first part of 2024.

Operating profit also rose, reaching CFA20.91 billion, a 37.1% increase from 2023. The profit from ordinary activities grew by 43.74%, totaling CFA18.12 billion.

After the first half of 2023, Nestlé Côte d'Ivoire anticipated a recovery in the second half. The company noted an improvement in net profit in the second quarter of 2023 compared to the first quarter, suggesting a potential turnaround. However, the year ended with nearly stagnant revenue and profits compared to 2022.

Despite possible challenges in the second half of 2024, the company remains confident in its ability to sustain this positive trend. Since the beginning of the year, the stock has lost 3.93% of its value due to disappointing results from the previous year. However, the announcement of significantly improved performance could reverse this trend and boost the stock price.