Nestle Nigeria Plc has reported a strong turnaround for the financial year ended December 31, 2025, posting a net profit of N104.97 billion compared with a loss of N164.60 billion in 2024.
Revenue rose by 26 per cent to N1.21 trillion from N958.81 billion in the prior year, driven by improved pricing, volume growth and operational efficiency. Operating profit increased by 34 per cent to N225.38 billion from N167.88 billion in 2024.
Profit before tax stood at N166.85 billion, reversing the N221.59 billion loss recorded a year earlier. The company reported an income tax expense of N61.88 billion, compared with a tax credit of N56.99 billion in 2024.
Gross profit climbed to N435.89 billion from N306.35 billion, despite cost of sales rising to N771.88 billion from N652.46 billion. Marketing and distribution expenses increased to N161.69 billion from N106.85 billion, while administrative expenses rose to N49.81 billion from N32.53 billion.
Net finance costs narrowed significantly to N58.54 billion from N389.46 billion in 2024, reflecting improved foreign exchange stability and a reduction in forex-related losses. Finance income rose to N42.43 billion from N3.37 billion, while finance costs declined to N100.96 billion from N392.83 billion.
The improved performance strengthened the company’s balance sheet, with total equity returning to a positive N12.89 billion as at December 31, 2025, compared with a negative N92.29 billion in 2024. Accumulated losses reduced to N112.78 billion from N243.23 billion.
Total assets stood at N846.16 billion, slightly lower than N858.70 billion recorded in 2024. Non-current assets increased to N554.55 billion from N500.40 billion, while current assets declined to N291.61 billion from N358.30 billion. Total liabilities fell to N833.27 billion from N950.99 billion, supported by a reduction in interest-bearing loans and borrowings.
Net cash generated from operating activities surged to N363.50 billion from N5.86 billion in 2024. Cash and cash equivalents rose to N35.26 billion at year-end, up from N22.49 billion.
In the fourth quarter, revenue grew to N323.24 billion from N293.52 billion in Q4 2024. Profit before tax increased by 15.1 per cent to N38.89 billion from N33.80 billion, while profit after tax rose to N32.48 billion from N19.68 billion.
Basic earnings per share stood at N132.42, compared with a loss per share of N207.65 in 2024. The company did not declare any interim or final dividend for the year.
Commenting on the results, the Managing Director/CEO, Wassim Elhusseini, said the 2025 performance reflects the company’s return to profitability since the fourth quarter of 2024, supported by operational efficiency and improved macroeconomic stability.
He noted that the reduction in negative retained earnings positions the company to eliminate accumulated losses in the near term and resume dividend payments once sustained profitability is achieved.
