Nestlรฉ Nigeria Demonstratesโ Strong Recovery in First โคThree Quartersโค of 2025
Nestlรฉ Nigeria PLC has reported a meaningfulโ turnaround in performance for the period spanning January to โSeptember 2025, achievingโข revenue of N884.5 billion – a 32.9% increase comparedโ to the N665.3 billion โคrecorded during the sameโฃ period in 2024. This โฃgrowth is largely attributed to the continued strong performance and consumer loyalty surrounding its core brands, including Maggi, Milo,โข Golden Morn, Cerelac, Nescafรฉ, and โฃnestlรฉ โคPure Life, โฃwhich allowed โfor modest priceโค adjustments without significant impact on sales volume.
The company’sโฃ gross profit also saw a substantial rise, increasing by 29% to N101.92 โbillion. This โresulted in an improved โฃgross margin โฃofโ 33.6%, up from 30.6% in the third quarter of 2024,indicating gains in production efficiency,cost control,and a favorable product mix.
While operating profit โincreased by 6.6% to N50.90โข billion, the operating margin experienced a slight decrease, falling to 16.8%โ from 18.5% in โค2024. This reduction is linked to โincreased expensesโฃ in โขmarketing, logistics, and administrative โoperations, coupled with inflationary pressuresโข on raw materials.
A key driverโข of theโ positiveโ financial results was a dramatic reduction in finance costs, which plummeted โคby 77.6% โto N11.34 โขbillion, compared to N50.62 billion โin the same period of the previous year. This improvement stemmed from โคreduced โขforeign exchange losses, lower borrowing levels, and โฃthe repayment of high-interest loans, benefiting from โขa more โstable exchangeโฃ rate environment and โคimproved debt management.
Consequently, Nestlรฉ Nigeriaโ reported aโข post-tax profit of N21.91 billion forโฃ the quarter, โฃa significant recovery from the โN7.36 billion โloss recorded in the same period of 2024. Earnings per share (EPS)โ also saw a marked improvement, rising to N27.64โค from a negative N9.28 in 2024.
The company’s balance sheet reflectsโค positive changes as well. Total assets were โคvalued โat N847.30 โฃbillion, a slight decrease from N858.70 billion at the end of December 2024, attributed toโ repayments of supplier advances โคand debtโ settlements.Totalโข liabilities decreased by 8.8% to N867.00 billion, driven โขby a 20.3% (N132.7 billion) reduction in interest-bearing loans and borrowings.
Notably, Nestlรฉโค Nigeria has โconsiderably improved its โequityโ position, moving from aโ negative equity of N92.29โข billion at the start of 2025 to a negative equity of N19.70 โbillion. This improvement is aโ directโ result of profit retention and debt โreduction efforts.
Analysts highlight Nestlรฉ’s performance as a exhibition โคof resilience within Nigeria’s challengingโ economic โฃclimate, characterized by inflation exceeding 27%โ and persistent exchangeโ rate pressures. โThey โanticipate the positive trend to continue into the โfinal quarterโค of 2025, contingent on sustained cost managementโค and adaptation to โongoingโข inflationary trends affecting production and distribution. The company’s performance suggests a strong โขrecovery trajectory following a difficultโ 2024, rebuildingโ profitability, liquidity, andโค investor confidence.
