Nestlé Nigeria Plc has reported a net profit of N72.5 billion for the first nine months of 2025, marking a sharp turnaround from the N184.3 billion net loss recorded during the same period in 2024.
The company’s revenue climbed to N884.5 billion in the nine months, a 33 percent year-on-year increase from N665.3 billion in 2024. Cost of sales also rose by 21.5 percent to N557.7 billion. Despite this, Nestlé’s gross margin improved to 37 percent, up from 31 percent in the previous year, as higher product prices helped boost revenue growth.
The improvement underscores a broader trend of earnings recovery among consumer goods firms. These firms are benefitting from FX market stability and the transfer of rising costs to consumers in 2025.
A significant highlight in Nestlé’s turnaround is the N20.8 billion net foreign exchange gain in 9M 2025. This marks a full reversal from the N285.3 billion FX loss recorded in 9M 2024.
The gain sharply reduced the company’s net finance costs, which fell from N366.2 billion to N53.4 billion within a year. It also shows how the recent normalisation of Nigeria’s FX market, supported by new monetary policies, has eased pressure on the balance sheets of import-dependent manufacturers.
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The company’s pre-tax profit surged by 150 percent YoY to N128 billion, from a pre-tax loss of N255.4 billion in 9M 2024.
Pre-tax profit jumped to N128 billion, a 150 percent increase compared to the pre-tax loss of N255.4 billion in 2024. Earnings per share stood at N91.44, translating to a price-to-earnings ratio of 15.75x, a sign of renewed investor confidence in the company’s fundamentals.
For the three months ending September 2025, Nestlé recorded N303.4 billion in revenue. This represents a 17.5 percent rise from N258.3 billion in the same period last year. Gross profit climbed 29 percent during the quarter, again driven by higher pricing rather than stronger sales volume.
Net income rose to N21.9 billion, compared to a N7.4 billion net loss a year earlier. However, the company’s Q3 profit margin stood at 7.2 percent, below the nine-month average of 8.2 percent. The weaker margin points to some operational inefficiencies and cost pressures in the quarter.
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Nestlé maintained a disciplined approach to debt management. Total assets declined slightly by 1.3 percent to N847.3 billion, from N858.7 billion at the start of the year. Liabilities dropped by 9 percent to N867 billion, reflecting reduced borrowing and lower financial obligations.
The company spent about N259.2 billion on interest and loan repayments during the period. Total borrowings fell to N521 billion from N653.7 billion at the beginning of 2025. This deleveraging helps lower future finance costs and supports a stronger cash position.
Capital expenditure stood at N69.5 billion, underscoring ongoing investments in capacity expansion and supply chain efficiency.