Nestlé Nigeria Plc has kicked off 2025 on a strong note, posting its best quarterly performance to date. The food and beverage giant reported N294.88 billion in revenue and a pre-tax profit of N51.15 billion in the first quarter, marking a dramatic turnaround from the N196.09 billion loss recorded in Q1 2024.
This resurgence builds on the company’s return to profitability in Q4 2024 and signals growing financial stability.
Key Q1 2025 Financial Highlights (YoY):
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Revenue: N294.88 billion (+60.71%)
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Cost of Sales: N175.16 billion (+30.31%)
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Gross Profit: N119.72 billion (+144%)
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Marketing & Distribution Expenses: N34.86 billion (+76.6%)
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Administrative Expenses: N11 billion (+30.5%)
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Operating Profit: N74.15 billion (+254.4%)
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Finance Cost: N23.47 billion (–89.3%)
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Net Profit After Tax: N30.18 billion (+121%)
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Earnings Per Share: N38.07 (+121.15%)
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Total Assets: N898.92 billion (+4.68%)
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Shareholders’ Funds: –N62.26 billion (Improved from –N92.29 billion in Dec 2024)
Recovery Driven by Strong Sales, Lower Finance Costs
Nestlé’s impressive results were driven primarily by a surge in revenue, which far outpaced the growth in production costs. This margin expansion helped lift gross and operating profits significantly, even as the company increased spending on marketing and distribution.
One of the biggest boosts came from a sharp drop in finance costs, falling nearly 90% year-on-year. In Q1 2024, foreign exchange losses severely impacted results, but this year, those translation losses dropped from N191.67 billion to just N163 million—a game-changer for the bottom line.
Shareholder Value Rising Despite Negative Equity
While shareholders’ equity remains in the red at –N62.26 billion, it’s a notable improvement from the –N92.29 billion reported at the end of 2024. This reflects lingering accumulated losses, but the trend is clearly positive.
The company’s earnings per share more than doubled, signaling a meaningful recovery for investors. Share price performance has followed suit, with a 25.7% year-to-date gain, reversing last year’s 20.25% loss over the same period.
Local Market Still Key to Growth
Nestlé Nigeria remains heavily reliant on domestic sales, underscoring the crucial role of the Nigerian economy in its business model. As the company stabilizes, shareholders may increasingly expect higher returns and continued growth momentum.
