Nestlé Returns to Profit, Restores Positive Equity

Nestlé Nigeria has announced a significant financial recovery in its full-year 2025 results, crossing the ₦1.2 trillion revenue threshold. This performance represents a substantial increase from the ₦958.8 billion recorded in 2024 and marks a pivotal turnaround for the consumer goods giant. According to the audited financial results filed with the Nigerian Exchange Limited on Wednesday, the company successfully transitioned its equity position from a negative ₦92.3 billion to a positive ₦12.9 billion.

The company’s bottom line saw a dramatic reversal, posting a net profit of ₦105 billion compared to a staggering loss of ₦164.6 billion in the previous year. This recovery was supported by a 34.3% increase in operating profit, which rose to ₦225.4 billion. Furthermore, the company reported a profit before tax of ₦166.8 billion, effectively erasing the ₦221.5 billion loss incurred during the 2024 fiscal period.

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A key highlight of the 2025 fiscal year was the company’s proactive debt management, including the early repayment of $40 million in foreign-denominated debt. Export performance also served as a strong growth lever, with export sales surging by 56% to reach ₦10.2 billion. The Managing Director and CEO of Nestlé Nigeria, Mr. Wassim Elhusseini, attributed these outcomes to renewed operational efficiency, the resilience of the workforce, and a more stable exchange rate environment for the naira against the dollar.

The improved earnings have significantly repaired the company’s balance sheet, reducing negative retained earnings by 53.6%, down from ₦243.2 billion to ₦112.8 billion. Management expressed optimism that the continued generation of net profit will soon eliminate the remaining negative retained earnings, allowing the company to resume dividend payments to its shareholders. This recovery signals a return to a more sustainable financial footing after a period of intense macroeconomic volatility.

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Looking toward 2026, Nestlé Nigeria plans to prioritize marketing investments to capture additional market share and strengthen its competitive positioning. The company intends to maintain a dual focus on driving cost efficiencies and investing in long-term sustainability initiatives that create shared value for stakeholders. By leveraging a more stable economic environment, the brand aims to build on the momentum of 2025 to deliver consistent, long-term growth.