Nestlé Nigeria Plc, a leading food and beverage giant, has reported a financial turnaround for the first half of 2025, posting a profit after tax of N50.6 billion for the period ended June 30.
The strong performance marks a reversal from the substantial loss of N176.9 billion recorded during the same period in 2024, signalling a strong return to profitability driven by strategic operational adjustments and an improving macroeconomic environment. The company attributed the rebound to robust revenue growth, disciplined cost management, and the early settlement of critical foreign exchange obligations, which had previously weighed heavily on its financial performance.
The unaudited financial statements for January to June 2025 reveal an improvement across key performance indicators. Revenue for the period rose 43 per cent year-on-year, climbing to N581.1 billion from N407.0 billion in H1 2024. This top-line expansion reflects the company’s continued ability to grow sales volumes and effectively manage pricing in a dynamic consumer market. The increased revenue also translated into enhanced profitability further down the income statement.
Gross Profit experienced a substantial increase, rising to N225.0 billion in H1 2025, a significant improvement compared to N127.3 billion in the prior year. This expansion in gross margin underscores the effectiveness of Nestlé Nigeria’s efforts in optimising its production costs and managing raw material procurement efficiently. The operational efficiency gains were further reflected in the company’s operating profit, which rose 106 per cent, reaching N130.4 billion from N63.1 billion in H1 2024.
The most striking aspect of the financial results is the swing from a loss to a substantial profit at both the pre-tax and post-tax levels. Profit Before Tax (PBT) reached N88.4 billion, a sharp and welcome reversal from a loss of N252.5 billion in the corresponding period last year. This turnaround was primarily facilitated by a reduction in net finance costs, which plunged from N315.6 billion in H1 2024 to N42.05 billion in H1 2025.
Consequently, the Profit After Tax (PAT) stood at N50.6 billion, a stark contrast to the N176.9 billion loss incurred in H1 2024. This positive PAT also contributed to a strengthening of the company’s equity position by N50.6 billion, enhancing its balance sheet and overall financial stability. A key strategic move that underpinned this financial recovery was the early repayment of a $20 million inter-group forex debt during the second quarter of 2025. This proactive debt management not only reduced finance costs but also mitigated future foreign exchange risks, providing a clearer path to sustainable profitability.
Wassim Elhusseini, managing director and CEO of Nestlé Nigeria Plc, commented on the results, emphasising the company’s resilience and strategic execution. He stated, “The robust topline growth of 43% and profit after tax of N50.6 billion in H1 2025 support our return to profitability which commenced in Q4 2024.” He further elaborated that the performance reflects the company’s commitment to operational excellence, the support of our stakeholders, and the dedication of the team to drive sustainable growth in the face of evolving challenges.
Looking forward, Elhusseini outlined Nestlé Nigeria’s priorities, focusing on sustaining the positive momentum. He emphasised the company’s commitment to maintaining margin improvement while simultaneously driving product innovation to meet the evolving demands of Nigerian consumers. “We will continue to focus on improving our margin management while driving innovation and renovation to meet changing consumer needs,” he stated. In addition, the company plans to maintain its investment in community programmes that create sustainable value for its stakeholders, reinforcing its commitment to corporate social responsibility alongside financial performance.
