Nestlé Nigeria Plc has staged a remarkable turnaround in its financial performance for the third quarter (Q3) of 2025, reporting a pre-tax profit of N39.6 billion, a major recovery from the N2.9 billion loss recorded in the same period of 2024. The impressive result marks a significant milestone in the company’s efforts to regain profitability following a challenging prior year marked by foreign exchange losses and high input costs.
For the nine months ended September 2025, the multinational food and beverage company recorded a pre-tax profit of N127.96 billion, in contrast to a loss of N255.38 billion during the same period in 2024, according to its unaudited financial statements. This performance was driven by a combination of strong revenue growth, improved cost efficiency, and reduced finance costs, signaling a robust recovery across its operations.
Revenue Growth and Segment Performance
Nestlé Nigeria reported Q3 2025 revenue of N303.4 billion, up 17.5% year-on-year from N258.3 billion in Q3 2024. The company’s growth was underpinned by consistent demand in both its Food and Beverage segments. Flagship products such as Maggi, Golden Morn, Cerelac, Milo, Nescafé, and Nestlé Pure Life continued to drive sales, supported by strong brand loyalty and effective marketing strategies.
For the nine-month period (January to September 2025), revenue rose 32.9% to N884.5 billion, compared to N665.3 billion in the corresponding period of 2024. This strong top-line performance highlights Nestlé’s ability to sustain consumer engagement and adapt to evolving market conditions, even amid economic headwinds such as inflation and currency volatility.
Key Financial Highlights (Q3 2025 vs Q3 2024)
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Revenue: N303.42 billion (+17.5%)
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Gross Profit: N101.92 billion (+29%)
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Operating Profit: N50.90 billion (+6.6%)
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Net Finance Cost: N11.34 billion (-77.6%)
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Pre-Tax Profit: N39.56 billion (vs N2.86 billion loss)
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Post-Tax Profit: N21.91 billion (vs N7.36 billion loss)
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Earnings Per Share (EPS): N27.64 (vs -N9.28)
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Total Assets: N847.30 billion (-1.3%)
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Total Equity: -N19.70 billion (vs -N92.29 billion)
Operational Efficiency and Margin Expansion
Nestlé’s profitability was bolstered by effective pricing strategies, resilient consumer demand, and improved cost absorption. The company’s gross profit rose 29% year-on-year to N101.92 billion, outpacing revenue growth. This resulted in an expansion of gross margin to 33.6%, up from 30.6% a year earlier, reflecting disciplined cost management, operational efficiency, and a favorable product mix.
However, increased operating costs, especially in marketing, distribution, and administrative functions, placed some pressure on overall profitability. The company noted higher logistics costs and elevated promotional spending, partly due to inflation and exchange rate fluctuations. Consequently, operating profit grew 6.6% to N50.90 billion, while the operating margin slipped to 16.8%, compared to 18.5% in Q3 2024.
Despite these cost pressures, Nestlé’s ability to maintain volume growth while implementing price adjustments demonstrates the underlying strength of its brand portfolio and distribution network.
Reduced Finance Costs and Improved Bottom Line
One of the most significant contributors to the company’s turnaround was the sharp reduction in finance costs, which fell 77.6% year-on-year to N11.34 billion, from N50.62 billion in Q3 2024. This decline was driven by:
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Lower exposure to foreign exchange-denominated loans,
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Reduced exchange rate losses on foreign payables, and
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Strategic repayment of high-interest borrowings.
These improvements in financial management significantly bolstered Nestlé’s bottom line, allowing it to convert higher operating earnings into strong net profitability.
Balance Sheet Strengthening and Equity Recovery
Nestlé Nigeria’s balance sheet showed signs of stabilization and gradual recovery. Total assets stood at N847.30 billion, marginally lower than N858.70 billion as of December 2024, reflecting prudent working capital management and advance payments to suppliers.
Total liabilities declined by 8.8% to N867.00 billion, mainly due to a 20.3% (N132.7 billion) reduction in interest-bearing loans and borrowings. This demonstrates management’s ongoing commitment to debt reduction and balance sheet restructuring.
Although the company’s equity position remains negative, it improved substantially to -N19.70 billion, from -N92.29 billion at the beginning of the year. This significant improvement underscores the impact of restored profitability and positive retained earnings on shareholder value.
Outlook and Conclusion
Nestlé Nigeria’s Q3 2025 performance reflects a strong operational and financial recovery following a challenging 2024. The company’s ability to grow revenue, expand gross margins, and significantly reduce finance costs positions it for continued profitability in the coming quarters.
However, management remains cautious about margin pressures stemming from inflation, logistics costs, and foreign exchange instability. The focus will remain on cost optimization, brand investment, and strengthening supply chain resilience to sustain momentum.
Nestlé Nigeria’s Q3 2025 results demonstrate a company in recovery mode — rebuilding profitability, enhancing liquidity, and improving balance sheet health. With a clear strategic direction and a resilient product portfolio, the company is well-positioned to deliver stronger full-year performance and reinforce its leadership in Nigeria’s fast-moving consumer goods (FMCG) sector.
