Nestlé Nigeria Plc has delivered a strong turnaround in its Q2 2025 financial results, posting a pretax profit of N37.2 billion, a sharp rebound from the N56.4 billion loss recorded in the same period last year.
The recovery momentum extends across the half-year, with pretax profit reaching N88.3 billion, a remarkable comeback from the N252.5 billion loss reported in H1 2024.
This impressive performance was driven largely by a sharp drop in finance costs and a solid boost in revenue.
In Q2 alone, revenue surged 28.08% year-on-year to N286.2 billion, compared to N223.4 billion in Q2 2024. For the half-year, total revenue climbed to N581.1 billion, representing a 42.79% increase.
- Of the H1 revenue, N577.5 billion came from domestic sales.
- Ghana contributed N3.4 billion, while Ivory Coast, Burkina Faso, and Cameroon generated N56.3 million, N49.8 million, and N18.6 million, respectively.
Nevertheless, the cost of sales also rose in tandem with the sales growth, reaching N181 billion in Q2, up 24.61% from N145.2 billion a year earlier.
- Still, gross profit advanced by 34.50% to N105.2 billion, marking improved operating efficiency.
Marketing and distribution expenses spiked to N38.8 billion, from N31.2 billion in Q2 2024.
- Yet, operating profit saw strong growth, rising 33.54% to N56.2 billion.
Perhaps the most striking development was the dramatic cut in finance costs, which dropped from N99.3 billion to just N19.7 billion in Q2, significantly aiding the recovery.
- As a result, net income rebounded to N20.3 billion, reversing the N34.2 billion loss recorded in the same quarter last year.
Nestlé also reported a 4.78% increase in total assets, now standing at N899.7 billion.
- Property, plant, and equipment made up the largest share at N457.4 billion, followed by inventories at N205.8 billion.
Giving insights on the company’s outlook, Mr. Wassim Elhusseini, CEO of Nestlé Nigeria, stated:
“We will continue to focus on improving our margin management while driving innovation and renovation to meet changing consumer needs. We will also maintain our investment in community programs that create sustainable value for our stakeholders.”
Key Highlights (Q2 2025 vs Q2 2024)
- Revenue: N286.2 billion, +28.08% YoY
- Cost of Sales: N181 billion, +24.61% YoY
- Gross Profit: N105.2 billion, +34.50% YoY
- Marketing and Distribution Expenses: N38.8 billion, +24.38% YoY
- Operating Profit: N56.2 billion, +33.54% YoY
- Finance Costs: N19.7 billion, -80.17% YoY
- Pretax Profit: N37.2 billion, +165.98% YoY
- Total Assets: N899.7 billion, +4.78% YoY
As of the close of trading on July 30, 2025, shares of the company were priced at N1,890, reflecting a year-to-date performance of +116%.
