Nestlé Nigeria Plc Rebounds to ₦72.5bn Profit in 9M 2025 as Revenue Surges 33% – Report

By Naija247news Business Desk | October 29, 2025

LAGOS — Nestlé Nigeria Plc has recorded a strong rebound in its financial performance for the first nine months of 2025, posting a profit after tax (PAT) of ₦72.48 billion, a dramatic turnaround from the ₦184.27 billion loss recorded in the same period of 2024, according to a report by Cowry Asset Management Limited.

The multinational food and beverage giant reported a 32.96% increase in revenue to ₦884.54 billion from ₦665.29 billion in 9M 2024, driven largely by higher product demand across its key brands and effective price adjustments amid persistent inflationary pressures.

Profitability Soars Amid Rising Costs

Despite rising input costs and exchange rate volatility, Nestlé’s gross profit rose sharply by 58.44% to ₦326.88 billion, compared to ₦206.31 billion last year. The company’s cost of sales grew by 21.5% to ₦557.66 billion, reflecting the impact of imported raw materials and energy costs.

Operating income also improved significantly, rising by 63.6% to ₦181.34 billion, while net finance costs dropped by 85%, signaling improved debt management and a more favorable financial structure compared to the massive ₦366.23 billion finance cost burden recorded in 2024.

As a result, Nestlé’s operating margin climbed to 20.5% from 16.7%, while its net profit margin recovered to 8.2% from a negative 27.7% in the prior year.

Balance Sheet Strengthens Despite High Borrowings

Nestlé’s total assets stood at ₦847.3 billion as of September 30, 2025, slightly lower than ₦858.7 billion at the end of 2024. The company’s inventory rose by 16.35% to ₦203.36 billion, while property, plant, and equipment grew by 9.59% to ₦461.55 billion — reflecting continued investment in production capacity.

Borrowings, however, remained substantial at ₦521.01 billion, though down 20.3% year-on-year. Total liabilities declined by 8.83% to ₦867.0 billion, while shareholders’ equity improved markedly from a negative ₦92.29 billion in 2024 to ₦19.70 billion, signaling recovery in retained earnings.

Market Indicators and Valuation

At a market price of ₦1,915 per share, Nestlé Nigeria’s market capitalization stood at approximately ₦1.52 trillion, with a price-to-earnings (P/E) ratio of 20.94x and an earnings yield of 4.77%.

The company’s return on equity surged to 367.9%, while return on assets stood at 8.6%, underlining strong profitability momentum after last year’s downturn.

Macroeconomic Context

The report was released against the backdrop of Nigeria’s tight monetary policy stance, with the Monetary Policy Rate (MPR) fixed at 27.0%, headline inflation at 18.02% (September 2025), and real GDP growth of 4.23% in Q2 2025.

These macro conditions, coupled with persistent FX pressures and high energy costs, continue to shape the performance outlook of manufacturing firms in Nigeria.

Analyst’s Outlook

Cowry Research analysts note that Nestlé’s earnings rebound reflects the company’s ability to navigate Nigeria’s harsh operating environment through cost optimization, pricing strategy, and supply chain resilience.

However, the report cautions that rising borrowing costs and sustained inflation could still constrain future profitability unless macroeconomic stability improves.

No interim dividend or bonus issue has been announced for the period under review.

Source: Cowry Asset Management Limited Research Report (October 29, 2025)
Disclaimer: The data provided is for informational purposes only and does not constitute an investment recommendation.

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Reporting by Godwin Okafor, The Naija247news in Lagos, Nigeria.