Nestlé Nigeria Plc has bounced back to profitability, posting a profit after tax of N50.6bn for the half-year period ended June 30, 2025. This strong recovery comes after the food and beverage company suffered a heavy loss of N176.9bn during the same period in 2024.
According to its unaudited financial statement filed with the Nigerian Exchange Limited, Nestlé Nigeria’s revenue rose sharply by 43 per cent to N581.1bn in the first six months of 2025, up from N407bn recorded in the same period last year. This growth was supported by improved sales across its product lines, including beverages, food seasoning, and dairy products, which continue to dominate Nigerian households.
Operating profit also more than doubled, growing from N63.1bn in H1 2024 to N130.4bn in H1 2025, showing a strong rebound in the company’s core business. Profit before tax rose to N88.4bn in the first half of the year, a significant improvement compared to the pre-tax loss of N252.5bn recorded in the first six months of 2024.
For the second quarter alone, Nestlé Nigeria posted a profit of N20.4bn on revenue of N286.2bn. This is in sharp contrast to the N34.2bn loss reported in Q2 2024 on a revenue of N223.5bn, signalling better cost control and improved business performance.
Despite the improved earnings, the company’s cost of sales increased to N356.2bn from N279.7bn. Marketing and distribution expenses also climbed to N73.7bn, up from N51bn in the previous year. Administrative expenses rose to N21.5bn from N13.6bn, as the company continues to deal with inflationary pressures and higher operational costs in Nigeria.
However, a major boost to the company’s performance came from a sharp decline in net finance costs. Nestlé Nigeria recorded net finance costs of N42bn in the first half of 2025, compared to a staggering N315.6bn in the same period in 2024. This reduction eased pressure on the bottom line and played a key role in helping the company return to profit.
Total comprehensive income stood at N50.6bn, reversing a loss of N26.9bn recorded in the first half of 2024. This reflects overall improvement in both operational and financial performance for the multinational food company.
The company’s total assets rose to N899.7bn as of June 30, 2025, up from N858.7bn at the end of 2024. This increase was supported by higher cash inflows from operations and improved inventory management.
While Nestlé Nigeria still reported a negative equity position of N41.7bn, its accumulated losses reduced from N243.2bn to N192.7bn, indicating gradual improvement in the company’s financial health. This follows a challenging 2024, when the company suffered from foreign exchange losses, high finance costs, and supply chain issues.
Earnings per share (EPS) also turned positive during the review period. The company recorded a basic earnings per share of N63.80 in H1 2025, compared to a loss per share of N223.19 in H1 2024. This development is expected to restore investor confidence and encourage renewed interest from shareholders who suffered losses in the past year.
Nestlé Nigeria’s performance is seen as a reflection of broader recovery in Nigeria’s fast-moving consumer goods (FMCG) sector, which is slowly adjusting to economic reforms, naira fluctuations, and cost challenges. Analysts believe that continued stability in the foreign exchange market and improvements in logistics and infrastructure will further strengthen the outlook for consumer companies.
The company is also expected to continue benefiting from strong brand loyalty in Nigeria and strategic pricing decisions in response to the economic environment.
Nestlé Nigeria Plc, a subsidiary of the Switzerland-based Nestlé Group, is one of Nigeria’s leading manufacturers of food and beverage products. Its popular brands include Milo, Maggi, Nescafé, Cerelac, and Golden Morn.
