Nestlé Nigeria Plc has made a strong comeback to profitability, posting a ₦30.2 billion profit after tax in the first quarter of 2025, compared to a staggering ₦142.7 billion loss in the same period last year. The turnaround reflects a robust improvement in operational efficiency and financial health.
The multinational food and beverage giant reported a 61% year-on-year revenue growth, with total revenue hitting ₦294.9 billion for the quarter, up from ₦183.5 billion in Q1 2024.
Key Highlights:
- Revenue: ₦294.9 billion (↑ 61% YoY)
- Operating Profit: ₦74.1 billion (↑ 254% YoY)
- Profit Before Tax: ₦51.2 billion (vs. ₦196.1 billion loss in Q1 2024)
- Profit After Tax: ₦30.2 billion (vs. ₦142.7 billion loss in Q1 2024)
- Equity Position: Improved by ₦30 billion
The company slashed its net finance costs to ₦23.0 billion, a dramatic reduction from ₦217.0 billion last year, which had largely driven the prior year’s losses.
“This performance reflects our team’s resilience and commitment to delivering value amid macroeconomic headwinds,” the company said in a statement.
Although cost of sales rose to ₦175.2 billion, gross profit still more than doubled to ₦119.7 billion, suggesting strong pricing power and improved cost management.
Nestlé’s equity position also strengthened by ₦30 billion, reinforcing its balance sheet after a challenging 2024 marked by currency devaluation and finance cost spikes.
Read More: Exclusive: NAFDAC misleads Nigerians on Nestlé sugar controversy
The Big Picture:
Nestlé’s return to profitability is a confidence booster for investors and signals that blue-chip manufacturers may be adapting to Nigeria’s volatile economic landscape. While headwinds remain — including FX risk and inflation — the Q1 performance paints a more optimistic outlook for 2025.
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