Nestlé Nigeria posts US$49.9M profit in nine months

NIGERIA – Nestlé Nigeria Plc has posted a net profit of N72.5 billion (US$49.9M) for the first nine months of 2025, marking a significant turnaround from the N184.3 billion (US$126.9M) net loss recorded during the same period in 2024. 

The company’s revenue rose to N884.5 billion (US$609.19M) in the nine-month period, reflecting a 33 percent year-on-year increase from N665.3 billion (US$458.22M) recorded in 2024.  

The growth was supported by sustained demand for Nestlé’s product portfolio and strategic price adjustments implemented during the period. Cost of sales increased by 21.5 percent to N557.7 billion (US$384.12M)

Despite the rise in production and input expenses, Nestlé strengthened its gross margin to 37 percent, compared with 31 percent a year ago, supported by higher product pricing. The result aligns with a broader recovery trend across Nigeria’s consumer goods industry, which has benefited from improved currency market stability and continued cost-pass-through measures in 2025. 

Commenting on the results, Managing Director and CEO of Nestlé Nigeria Plc, Wassim Elhusseini, said the company’s performance demonstrated the continuation of its profitability recovery.  

“The topline growth of 33% during this period, along with a profit after tax of N72.5 billion, clearly illustrate that our dedication to operational excellence and our robust fundamentals are producing the desired outcomes,” he stated. 

The firm reported a pre-tax profit of N128 billion (US$88.16M) for the nine months, rebounding sharply from a pre-tax loss of N255.4 billion (US$175.90M) in the same period of 2024. Earnings per share stood at N91.44 (US$62.98M), reflecting renewed investor sentiment with a price-to-earnings ratio of 15.75x. 

For the third quarter ending September 2025, the company generated N303.4 billion (US$208.96M) in revenue, up 17.5 percent from N258.3 billion (US$177.90M) in the corresponding period last year. Gross profit for the quarter rose 29 percent, primarily on account of higher selling prices rather than volume expansion.  

Net income for the quarter reached N21.9 billion (US$15.08M), reversing a N7.4 billion (US$5.097M) loss recorded in Q3 2024. However, the quarterly profit margin of 7.2 percent fell short of the nine-month average of 8.2 percent, indicating some cost and efficiency pressures during the period. 

Looking ahead, Elhusseini noted that Nestlé remains focused on improving margin management, accelerating business transformation efforts, and investing in initiatives that support long-term value creation across its value chain. 

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