Nestlé Nigeria Plc has posted a strong financial recovery for the 2025 financial year, returning to profitability with a net profit of N104.97 billion after recording a loss of N164.6 billion in the previous year, as improved operational efficiency and a more stable foreign exchange environment boosted the company's performance.
The food and beverage manufacturer also reported a 26 per cent increase in revenue to N1.21 trillion, up from N958.82 billion in 2024, reflecting sustained demand for its products despite the challenging operating environment.
The audited results showed that the company's operating profit rose by 34.3 per cent to N225.4 billion from N167.9 billion recorded a year earlier. Profit before tax stood at N166.85 billion, marking a significant turnaround from the N221.5 billion loss reported in 2024.
Nestlé Nigeria also strengthened its balance sheet during the year, reversing its equity position from a negative N92.3 billion in 2024 to a positive N12.9 billion. The company attributed the improvement to stronger operational performance, prudent financial management and the early repayment of 40 million dollars in foreign exchange-denominated debt.
The company's export business also recorded notable growth, with export sales rising by 56 per cent to N10.2 billion from N6.6 billion in the previous year, highlighting efforts to expand its regional market footprint.
Performance in the final quarter of the year further underscored the company's recovery. Revenue increased to N323.2 billion in the fourth quarter of 2025 from N293.5 billion in the corresponding period of 2024. Profit before tax grew by 15.1 per cent to N38.9 billion, while profit after tax climbed to N32.5 billion from N19.7 billion recorded in the same quarter of the previous year.
Nestlé Nigeria's shares were trading at N3,100 following the release of the results.
Commenting on the performance, the Chief Executive Officer and Managing Director of Nestlé Nigeria Plc, Mr. Wassim Elhusseini, said the company's return to profitability was built on operational resilience and improved macroeconomic conditions.
"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 our renewed operational efficiency, which continue to deliver strong outcomes, supported by the stability of the Naira against the Dollar.
"This improved performance has positively impacted our equity position. With the results achieved in 2025, negative retained earnings from the previous period reduced by 53.6% from N243.2bn in 2024 to N112.8bn in 2025. We are optimistic that as long as the business generates positive net profit, we will soon eliminate the negative retained earnings and resume dividend payments.
"In the year ahead, we will keep driving cost efficiencies to support our growth in what we expect will be a more stable economic environment. Marketing investments will remain a priority as we work to capture additional market shares and strengthen our position in the marketplace.
"In line with our long-term sustainability commitments, we will also maintain our investment in initiatives that create shared value for all stakeholders."
The latest results signal a significant turnaround for Nestlé Nigeria after a difficult 2024, positioning the company for sustained growth as it focuses on improving operational efficiency, expanding market share and restoring shareholder value.