Nestlé Nigeria Plc has returned to profitability in the 2025 financial year, posting a Profit Before Tax (PBT) of N166.8 billion, compared to the N221.5 billion loss recorded in 2024.
The company disclosed this in its audited financial results for the full year ended December 31, 2025, which were filed with the Nigerian Exchange at the close of business on Wednesday, February 25, 2026.
The strong turnaround was driven by growth in revenue, finance income and reduced finance costs, reflecting a more stable naira environment.
Key Highlight (2025 vs 2024):
- Revenue increased: N1.2 trillion, up 26% from N958.8 billion in 2024
- Cost of Sales: N771.88 billion in 2025, compared to N652.46 billion in 2024.
- Gross Profit: N435.89 billion in 2025, up from N306.35 billion in 2024.
- Operating Profit: N225.38 billion in 2025, compared to N167.88 billion in 2024
- Finance Income: N42.43 billion in 2025, significantly higher than N3.37 billion in 2024.
- Finance Costs: N100.96 billion in 2025, down from N392.83 billion in 2024.
- Profit before tax: N166.8 billion, reversing N221.5 billion loss in 2024
- Profit after tax: N105 billion, reversing N164.6 billion loss in 2024
- Total assets: N846.16 billion in 2025, down 1.5% from N858.70 billion in 2024
- Total equity: N12.89 billion in 2025, reversing N92.29 billion negative equity in 2024
CEO’s comments:
In a release accompanying the audited results, the company’s Chief Executive Officer, Mr. Wassim Elhusseini, said:
- “Our 2025 results reflect the strong foundations of our return to profitability since the fourth quarter of 2024, with the resilience of our people and renewed operational efficiency, supported by the stability of the Naira against the Dollar.”
- “Negative retained earnings reduced by 53.6% from N243.2 billion in 2024 to N112.8 billion in 2025.”
- “As long as the business generates positive net profit, we will soon eliminate the negative retained earnings and resume dividend payments.”
Driving the numbers
The 2025 financial performance shows a broad-based recovery across key indicators, underpinned by revenue growth and a sharp decline in finance costs.
- Revenue rose by 26% year-on-year to N1.2 trillion from N958.8 billion in 2024, driven mainly by the food segment that contributed N784 billion, while beverages contributed N424 billion.
- Although the cost of sales increased to N771.88 billion from N652.46 billion, gross profit rose to N435.89 billion from N306.35 billion.
- Operating profit from core activities increased to N225.38 billion from N167.88 billion in 2024, while finance costs dropped significantly to N100.96 billion from N392.83 billion.
- Finance income surged to N42.43 billion compared to N3.37 billion in the prior year, further supporting profitability.
- Profit After Tax (PAT) climbed to N105 billion, reversing the N164.6 billion loss recorded in the previous year.
- For the fourth quarter (Q4) 2025 alone, PBT rose by 15.1% to N38.9 billion from N33.9 billion in Q4 2024, while PAT nearly doubled to N32.5 billion from N19.7 billion in the same period.
Balance sheet analysis
Total assets declined by 1.5% to N846.16 billion from N858.70 billion in 2024 due to a decline in prepayments (Advance payment to suppliers and deposit for imports).
- Prepayments dropped to N53.8 billion from N149.46 billion in 2024
Total equity improved to a positive N12.89 billion, reversing the negative equity of N92.29 billion in 2024, aided by the drop in retained losses.
- Retained losses declined to N112.778 billion from N243.228 billion in 2024.
Market reaction
As of the close of trading yesterday, the shares were priced at N3,100, depicting a 44% in February alone, pushing the YtD gain to 58.2%.
Good analysis