Nestlé Nigeria 's drive to triple its annual sales to more than US$2bn within the next decade is a strong indicator of growing investor confidence in Africa's second largest economy. Spurred by a 38 % year-on-year (y-o-y) increase in pre-tax profit for 2012 (year to December) , the goals set out by the world's largest food company are testament to Nigeria's strengthening reputation as a desirable target for increased growth and investment. With gross revenue from the previous year up 19% for the year to December 2012 to NGN117bn (US$743.3mn) , Nestlé Nigeria is growing quickly in one of Africa's most exciting markets .
|Great Outlook For Nestlé|
|Nigeria - Food Consumption (NGNbn) & % chg y-o-y|
As an i ndustry leader , Nestlé's long - term commitment to expansion is in line with our promising outlook for the Nigerian food and drink sector. The consumer market for food , particularly cereal , is booming, with per capita food consumption projected to rise by 13.3% in 2013 . As Africa's most populous nation continues to grow, providing a youthful and rapidly urbanizing consumer base, demand is set to rise. With the real GDP forecast to grow by 7.1% in 2013 , and steady GDP growth over the next few years , Nigeria remains a promising emerging consumer market. A burgeoning middle class has accompanied economic growth, and this group's increasing spending power is being targeted by multinationals such as Nestl é and their branded commercial food and drink goods. Identifying these changing consumer trends presents huge potential for companies intent on tapping into an increasingly lucrative Nigerian market. While l ike the rest of West Africa Nigeria continues to witness rapid urbanization, increased distribution to rural areas (led by firms such as Nestl é ), will only increase manufacturing operations and sales volumes in the region.
Given the long-term commitment to the region demonstrated by industry leaders such as Nestlé , growth can be expected across the food industry in absolute terms and from the perspective of companies in terms of sales. .With a growing youthful population, emerging middle class and increasing economic stability, there remains huge potential in Nigeria. Africa's top oil producer may have already captured the attention of industry leaders such Nestlé and Unilever , but opportunities for growth remain plentiful. Consequently, the prospects for the Nigerian food and drink sector are promising, with the recent targets released by Nestlé Nigeria providing strong evidence of investor confidence in Africa's most populous nation.