By Abiodun JIMOH
Nestlé Nigeria Plc has once again demonstrated its resilience and operational strength with an impressive financial performance for the first nine months of 2025. The results reflect a sustained turnaround from the challenges that weighed heavily on its operations in 2024, as the company recorded robust growth in revenue, a strong profit margin, and improved shareholder value.
According to its unaudited financial statement for the period January to September 2025 seen BusinessNG, Nestlé Nigeria posted a revenue of ₦884.5 billion—representing a 33% increase from the ₦665.3 billion recorded in the same period of 2024. This strong top-line performance was driven by higher product demand, improved distribution efficiency, and the company’s ability to adapt its pricing strategies to offset rising input costs and inflationary pressures in the Nigerian economy.
The results also showed that the company’s operating profit rose by 63.6%, climbing to ₦181.3 billion in 2025 from ₦110.8 billion in 2024. This growth was achieved through tighter cost controls, better production efficiency, and strong execution of its margin management strategy. Despite the economic headwinds, particularly the volatility in foreign exchange rates and high energy costs, Nestlé Nigeria managed to maintain a balance between growth and profitability.
A notable highlight of the report is the company’s return to solid profitability. Nestlé recorded a profit before tax of ₦127.9 billion, a remarkable turnaround from the pre-tax loss of ₦255.4 billion reported in the same period last year. This means that after accounting for finance costs, the company has successfully reversed the heavy losses caused by foreign exchange fluctuations and high input costs that impacted performance in 2024.
After paying taxes, the company posted a profit after tax of ₦72.5 billion, compared to a loss of ₦184.3 billion in the same period last year. This represents a major recovery for one of Nigeria’s largest consumer goods firms and a strong signal that its recovery plan—centered on operational excellence, product innovation, and local sourcing—is delivering results.
Nestlé’s cost of sales for the period stood at ₦557.7 billion, up from ₦459 billion in 2024. While production costs increased due to inflation and foreign exchange volatility, the company’s gross profit still rose significantly to ₦326.9 billion from ₦206.3 billion in the prior year. This improvement in gross margin shows that Nestlé has been able to pass on part of its higher costs to consumers through pricing adjustments while maintaining demand across its key brands such as Milo, Maggi, Nescafé, Golden Morn, and Nestlé Pure Life.
Another strong indicator of financial discipline is the company’s ability to reduce its net finance costs sharply from ₦366.2 billion in 2024 to ₦53.4 billion in 2025. This significant drop shows better foreign exchange management and reduced exposure to dollar-denominated liabilities. In addition, Nestlé made an early payment of $20 million in inter-group foreign exchange debt in the third quarter of 2025—a strategic move that reduces future interest obligations and currency risks.
The company’s equity position also improved by ₦72.5 billion, showing enhanced shareholder value and balance sheet strength. This improvement means that Nestlé has not only regained profitability but is also building financial resilience that will support future investments and expansion.
Speaking on the performance, Mr. Wassim Elhusseini, Managing Director and Chief Executive Officer of Nestlé Nigeria Plc, said the company’s results reflect the sustainability of its recovery and growth strategy. According to him, “The results for the nine months signify the sustainability of our return to profitability since the fourth quarter of 2024. The topline growth of 33% during this period, along with a profit after tax of ₦72.5 billion, clearly illustrate that our dedication to operational excellence and our robust fundamentals are producing the desired outcomes.”
He added that Nestlé remains focused on driving further growth through innovation, efficient operations, and community-based initiatives that create value across its supply chain. “We remain focused on enhancing our margin management initiatives, accelerating the transformation of our business, while investing in programs that create sustainable value for all our stakeholders—starting from our employees and consumers, and extending to our communities and partners across our value chain,” Elhusseini said.
Nestlé Nigeria has long positioned itself as a key player in Nigeria’s fast-moving consumer goods (FMCG) sector. The company’s brands have become household names, and its production facilities in Ogun and Abaji remain critical to its ability to meet the demands of Nigerian consumers. However, like many manufacturing companies in Nigeria, Nestlé has faced challenges from the depreciation of the naira, high cost of diesel, and imported raw materials. The company’s ability to maintain growth under such tough conditions is a testament to its strong local strategy and adaptive management.
Industry analysts view the 2025 nine-month performance as evidence of a well-implemented turnaround strategy. In 2024, Nestlé faced severe losses due to foreign exchange revaluation and cost escalation following Nigeria’s currency reforms. The Central Bank’s unification of exchange rates led to a sharp rise in costs for companies with foreign-denominated loans and imported inputs. However, by 2025, Nestlé had reduced its exposure through better risk management, local sourcing of raw materials, and productivity improvements.
The company’s focus on sustainability and community impact has also remained strong. Nestlé continues to invest in youth empowerment, nutrition education, and environmental initiatives aimed at reducing waste and supporting recycling. Its “Nestlé for Healthier Kids” and “Empowering Rural Women in Nigeria” projects are examples of how it combines business success with social responsibility.
Financial experts believe that Nestlé’s ability to record a 33% revenue increase in a period when many companies are struggling with weak consumer demand is a reflection of its brand strength and effective marketing strategy. The company’s wide distribution network and its strong understanding of local tastes have helped it maintain market leadership.
Moreover, the strong performance could boost investor confidence and attract more foreign direct investment into Nigeria’s consumer goods sector. Nestlé Nigeria remains one of the most valuable companies listed on the Nigerian Exchange Group (NGX), and its improved performance will likely support the company’s share price and dividend outlook.
Looking ahead, analysts expect the company to maintain its growth trajectory into the final quarter of 2025. The key focus areas include deepening local sourcing of raw materials, improving energy efficiency, and expanding digital marketing to reach more consumers. With its stable management team and long-term commitment to Nigeria, Nestlé is well-positioned to weather macroeconomic challenges and continue delivering value to shareholders and consumers alike.
In summary, Nestlé Nigeria’s nine-month 2025 results tell a clear story of recovery, resilience, and renewed profitability. The company has successfully turned the corner from a loss-making year in 2024 to a profitable one in 2025. By maintaining strong fundamentals, improving efficiency, and focusing on sustainable growth, Nestlé is reaffirming its status as one of Nigeria’s most trusted and forward-looking companies.
Its performance provides reassurance not just to investors but also to consumers and employees who see the brand as a symbol of quality, consistency, and long-term stability. As Nigeria’s economy continues to adjust to post-reform realities, Nestlé’s example offers a glimpse into how disciplined management, strong governance, and strategic innovation can drive success—even in difficult times.
Nestlé Nigeria’s nine-month results, therefore, are not just numbers on a balance sheet; they represent the story of a company that continues to grow, innovate, and inspire confidence in the Nigerian market.
