February 26, (THEWILL) — Nestlé Nigeria Plc has posted a strong turnaround in the 2025 financial year, returning to profitability with a Profit Before Tax (PBT) of ₦166.8 billion, compared with a pre-tax loss of ₦221.5 billion in 2024, according to the company’s audited financial statements filed with the Nigerian Exchange.
Solid Growth in Revenue and Operating Performance
Revenue: Nestlé Nigeria’s full-year revenue rose by 26% to ₦1.2 trillion, up from ₦958.8 billion in 2024, driven by stronger sales across its food and beverage segments.
Gross Profit: The company reported ₦435.9 billion in gross profit, compared with ₦306.3 billion in the prior year.
Operating Profit: Operating profit climbed to ₦225.4 billion, up from ₦167.9 billion in 2024.
A sharp improvement in net finance performance supported Nestlé Nigeria’s turnaround:
Finance income jumped to ₦42.4 billion from ₦3.4 billion, while finance costs fell to ₦101 billion from ₦392.8 billion.
This reduction in finance costs, particularly related to lower foreign exchange losses, was a key contributor to the profitability swing.
Net Profit and Balance Sheet Strength
Profit After Tax (PAT): The company recorded ₦105 billion in net profit, reversing the ₦164.6 billion loss seen in 2024.
Equity Position: Total equity moved back into positive territory at ₦12.89 billion, compared with negative equity of ₦92.29 billion in 2024.
Total Assets: The company’s total assets slightly declined to ₦846.16 billion from ₦858.70 billion a year earlier.
In a statement accompanying the audited results, Nestlé Nigeria’s Chief Executive Officer noted that the improved performance reflects the company’s operational resilience and efficiency, supported by a more stable naira exchange rate environment compared with prior years of volatility.
The CEO also highlighted a significant reduction in retained losses, which fell by more than 50%, and expressed optimism that continued profitability would help fully eliminate negative retained earnings and pave the way for future dividend payments.
Analysts say the return to profitability marks a key milestone for the company, following two consecutive years of losses driven largely by foreign exchange pressures and finance costs. The improved performance is likely to bolster investor confidence and may positively influence the company’s share price and market sentiment in 2026
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
