Onome Amuge
Nestlé Nigeria has staged a dramatic return to profitability in the first quarter of 2025, posting a profit after tax of N30.2 billion. The figure marks a significant turnaround for the food and beverage giant, which recorded a loss of N142.7 billion in the same period a year prior.
According to unaudited financial statements for the three months ending March 31, 2025, the Nigerian arm of the Swiss multinational saw its profit before tax reach N51.2 billion, a stark contrast to the N196.1 billion pre-tax loss reported in the first quarter of 2024.
The company’s top line witnessed robust growth, with revenue climbing 61 per cent to N294.9 billion, up from N183.4 billion in the corresponding period last year. While the cost of sales also increased to N175.1 billion from N134.4 billion, Nestlé Nigeria still managed to more than double its gross profit to N119.7 billion, compared to N49.0 billion in Q1 2024.
According to the company, operating profit was up 254 per cent to N74.1 billion, a substantial leap from the N20.9 billion recorded in the first quarter of 2024.
Despite a notable finance cost of N23.5bn, the company reduced its net finance costs from the previous year’s N217.0 billion. The company also reported a tax expense of N21.0 billion, compared to a tax credit of N53.4 billion in the first quarter of 2024.
Furthermore, Nestlé Nigeria demonstrated improved financial resilience, with shareholders’ equity increasing by N30.0 billion within the quarter, reflecting enhanced investor value.
The company’s financial turnaround is highlighted by the improvement in key metrics including operating profit which soared from N20.9 billion in the first three months of 2024 to N74.1 billion in the same period this year, accompanied by a considerable expansion in operating margins.
In a similar vein, profit before tax shifted from a loss of N196.1 billion to a profit of N51.2 billion, while the bottom line swung from a N142.7 billion loss to a N30.2 billion profit.
