Nestlé Nigeria records US$31.8M profit after tax for Q1 2025, restoring its profitability

NIGERIA – Nestlé Nigeria Plc has returned to profitability, reporting a profit before tax of N51.2 billion (US$31.8M) for the first quarter (Q1) ending March 31, 2025, a notable recovery from a loss of NN196.1 billion (US$121M) in Q1 2024.

This turnaround was fuelled by strong revenue growth, improved cost efficiency, and a significant reduction in foreign exchange losses.

Additionally, operating profit increased by 254% to N74.1 billion (US$46M), up from N20.9 billion (US$12.9M) in the same period last year.

“The Q1 2025 outcomes reflect our unwavering commitment to operational excellence and strong fundamentals, marking a successful continuation of our return to profitability that began in Q4 2024,” said Wassim Elhusseini, CEO and Managing Director of Nestlé Nigeria.

He added that the robust topline growth of 61% in Q1 2025 and a profit after tax of N30.18 billion (US$18.7M) demonstrates that their focused efforts are yielding the desired results, driven by strong operating performance.

Looking ahead, Elhusseini emphasized that the company will remain dedicated to driving innovation and renovations to meet evolving consumer needs, enhancing margin management initiatives, and investing in community programs that provide sustainable value to all stakeholders.

Profit after tax was reported at N30.18 billion (US$18.7M), compared to a loss of NN142.7 billion (US$88M) during the same period last year.

“This result highlights Nestlé’s commitment to consistently delivering long-term value to its shareholders while effectively navigating the challenges of the current business environment,” Elhusseini added.

Earlier this year, Nestlé Nigeria Plc announced a 75% increase in revenue to NN958.81 billion (US$638.67M) for the financial year ending December 31, 2024, compared to NN547.12 billion (US$364.4M) in 2023.

This strong revenue growth was driven by increased demand for its products; however, rising input costs and economic challenges in Nigeria have pressured profit margins.

The company’s operating profit rose 35.6% to NN167.9 billion (US$111.8M) from NN123.8 billion (US$82.5M) in the previous year.

Nevertheless, the cost of sales surged by 97.74% to NN652.46 billion (US$434.6M) from NN329.95 billion (US$219.8M), reflecting the impact of high inflation in Nigeria on production expenses. Companies across the country continue to face increased borrowing costs and currency devaluation, both of which have strained profitability.

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