In the first quarter of 2020, NESTLE reported a 0.90% YoY contraction in topline – the first drop since Q1:2015. The food giant’s Q2:2020 financial scorecard reveals a further moderation in topline down by 0.35% YoY to NGN70.70bn. We reiterate that NESTLE’s topline growth has increasingly slowed since Q1:2019 (+5.19% YoY, +4.59% YoY, and +2.36% YoY in Q1, Q2 and Q3:2019 respectively) – bucking the trend of double-digit growth, although it picked up in Q4:2019 (+15.12% YoY). This, as well as the steady decline (-1.29% and -1.14% in Q1 and Q2:2020 respectively) in domestic sales (which typically accounts for 98.5% of overall revenue) leads us to believe that the increasing strain on consumer wallets continues to bite into the company’s sales.
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