Nestlé Nigeria Plc has reported a strong rebound in its third quarter (Q3) 2025 results, posting a pre-tax profit of N39.6 billion, a sharp turnaround from the N2.9 billion loss recorded in the same quarter of 2024.

This took its nine-month pre-tax profit to N127.96 billion, compared to a loss of N255.38 billion recorded in the same period in 2024.

According to the unaudited results, the multinational food giant also posted healthy revenue growth across its two core segments.

• Q3 2025 revenue grew by 17.5% YoY to N303.4 billion, up from N258.3 billion in Q3 2024.

This growth was largely driven by strong performance in the Food segment (Maggi, Golden Morn, Cerelac) and Beverages (Milo, Nescafé, Nestlé Pure Life).

For the 9-month period (Jan–Sep 2025), revenue rose by 32.9% YoY to N884.5 billion, compared to N665.3 billion in 2024.

Key financial highlights (Q3 2025 vs. Q3 2025) 

• Revenue: N303.42 billion (+17.5% YoY)
• Gross Profit: N101.92 billion (+29% YoY)
• Operating Profit: N50.90 billion (+6.6% YoY)
• Net Finance Cost: N11.34 billion (-77.6% YoY)
• Pre-Tax Profit: N39.56 billion (vs. N2.86 billion loss)
• Post-Tax Profit: N21.91 billion (vs. N7.36 billion loss)
• Earnings Per Share (EPS): N27.64 (vs. -N9.28)
• Total Assets: N847.30 billion (-1.3%)
• Total Equity: -N19.70 billion (vs -N92.29 billion)

Nestlé Nigeria’s Q3 2025 results were powered by a combination of resilient demand, effective pricing, and improved cost absorption.

• The company reported a 17.5% year-on-year increase in revenue to N303.42 billion, supported by strong performance across its Food and Beverage segments.
• Its flagship brands Milo, Maggi, Golden Morn, Cerelac, and others continued to enjoy solid consumer loyalty, allowing Nestlé to implement price increases without significant volume erosion.

This pricing power, coupled with better operational leverage, saw gross profit rise 29% YoY to N101.92 billion, ahead of revenue growth.

• The gross margin expanded to 33.6% from 30.6%, reflecting disciplined cost management, production efficiency, and favorable product mix.
• However, higher operating costs, particularly in marketing, distribution, and administrative expenses, moderated overall profitability at the operating level. Nestlé had to contend with rising logistics costs, increased promotional activity, and FX-driven cost inflation.
• As a result, operating profit rose 6.6% to N50.90 billion, but operating margin slipped to 16.8%, down from 18.5% in Q3 2024, highlighting the pressure on margins despite strong top-line growth.

In essence, revenue growth and gross margin expansion were the main drivers of performance, while rising operating costs acted as a brake on the full earnings potential for the quarter.

Finance costs tumble as FX pressures ease and borrowings reduce 

The biggest earnings driver was the massive drop in net finance costs, down 77.6% to N11.34 billion from N50.62 billion a year earlier. This was primarily due to:

• Reduced exposure to FX-denominated loans
• Lower exchange losses on foreign payables
• Strategic repayments of high-interest borrowings

This helped swing the bottom line significantly

Balance sheet 

Total assets stood at N847.30 billion, slightly down from N858.70 billion as at December 2024, largely due to the repayment, especially advance payment to suppliers.

Total liabilities declined 8.8% to N867.00 billion, driven by a N132.7 billion (20.3%) drop in interest-bearing loans and borrowings, reflecting management’s focus on deleveraging and restructuring debt.

Despite still being in negative equity territory, Nestlé’s total equity improved significantly to -N19.70 billion, up from -N92.29 billion at the start of the year signalling improved retained earnings from recent profits.

Nestlé Nigeria’s Q3 2025 results reflect a clear operational recovery after a bruising 2024. While topline growth remains solid and finance cost relief has arrived, the company still needs to watch margin pressure and balance sheet repair.

That said, Nestlé appears to be moving in the right direction, rebuilding profitability, liquidity, and equity and laying the foundation for stronger full-year performance.

Source: Nairametrics