Nestlé Nigeria returns to profit as FX losses ease

Nestlé Nigeria Plc, the country’s largest food and beverage company, has staged a remarkable financial recovery, swinging from a significant loss to a robust profit in the first half of 2025.

The turnaround was primarily driven by a drastic reduction in foreign exchange-related finance costs that had severely impacted its earnings a year earlier.

The consumer goods giant reported a profit after tax of N50.57 billion for the six months ended June 30, a 128.5% rise from the N176.91 billion loss recorded in the same period of 2024, reflecting a major rebound in profitability.

Revenue for the period also saw a healthy increase, climbing to N581.12 billion from N406.97 billion in H1 2024. The 42.8% surge shows continued demand for its popular brands like Maggi, Milo, and Golden Morn, despite a challenging economic climate.

The most impactful factor in Nestlé’s return to profitability was the dramatic improvement in its net finance costs. These plummeted to N42.05 billion in H1 2025, a significant reduction from the staggering N315.60 billion incurred in the prior year. The massive difference largely stems from a decrease in unrealized foreign exchange losses on its dollar-denominated obligations, which had been exacerbated by the Naira’s volatility in 2024.

Basic earnings per share (EPS) mirrored this positive shift, climbing to N63.80 from a loss of N223.19 per share in H1 2024.

FX troubles

Nestlé Nigeria, like many multinational companies operating in the country, has grappled with the impact of a volatile naira. The prior year’s losses were heavily influenced by the sharp devaluation of the local currency.

The current period’s results suggest a more stable, albeit still challenging, foreign exchange environment, allowing the company’s operational strengths to translate into stronger financial performance.