Nestlé Nigeria’s Remarkable Financial Turnaround in H1 2025
Nestlé Nigeria Plc has achieved a significant financial turnaround in the first half of 2025, reporting a robust profit after tax of N50.6 billion. This impressive performance marks a stark contrast to the N176.9 billion loss recorded during the same period in 2024, demonstrating the company’s successful efforts to navigate challenging market conditions and regain profitability. The company’s unaudited interim financial statements reveal a 43% surge in revenue, reaching N581.1 billion compared to N407 billion in the first half of 2024. This remarkable growth showcases Nestlé Nigeria’s ability to capitalize on market opportunities and enhance its revenue streams.
A key driver of Nestlé Nigeria’s resurgence is the substantial improvement in operating profit, which climbed to N130.4 billion from N63.1 billion in the corresponding period of the previous year. This surge in operating profit reflects the company’s effective cost management strategies and improved operational efficiency. Furthermore, the profit before income tax witnessed a dramatic turnaround, soaring to N88.4 billion from a loss of N252.5 billion in the first half of 2024. This substantial improvement underscores Nestlé Nigeria’s ability to enhance its profitability and strengthen its financial position.
Analyzing the second quarter of 2025, Nestlé Nigeria continued its positive momentum, reporting a profit of N20.4 billion on revenue of N286.2 billion. This compares favorably to the N34.2 billion loss on N223.5 billion revenue recorded in the second quarter of 2024. The consistent growth in both profit and revenue throughout the first half of 2025 highlights the company’s sustained efforts to improve its financial performance.
While Nestlé Nigeria’s cost of sales increased to N356.2 billion from N279.7 billion, and marketing and distribution expenses rose to N73.7 billion from N51 billion, these increases are proportionate to the substantial revenue growth. Administrative expenses also saw an increase, reaching N21.5 billion from N13.6 billion in the prior year. This can be attributed to the company’s investments in expanding its operations and enhancing its administrative capabilities.
Crucially, Nestlé Nigeria’s net finance costs witnessed a significant decrease, declining to N42 billion from N315.6 billion in the first half of 2024. This substantial reduction in finance costs reflects the company’s prudent financial management and successful efforts to optimize its debt structure. The improvement in net finance costs has significantly contributed to the overall profitability of the company.
As of June 30, 2025, Nestlé Nigeria’s total assets stood at N899.7 billion, compared to N858.7 billion at the end of 2024. This increase in total assets further strengthens the company’s financial position and provides a solid foundation for future growth. Although the company’s accumulated losses reduced to N192.7 billion from N243.2 billion, total equity remained negative at N41.7 billion. However, the significant improvement in profitability and the reduction in accumulated losses signal a positive trend towards restoring positive equity in the near future. The basic earnings per share for the period under review reached N63.80, a dramatic improvement from the loss per share of N223.19 recorded in the first half of 2024. This remarkable turnaround in earnings per share underscores the company’s enhanced profitability and its potential to deliver value to its shareholders.
