Nestlé Nigeria Rebounds to Profitability After Two Years of Losses

Nestlé Nigeria has announced its return to annual profitability in 2025, posting a net profit of N105 billion. This achievement offers significant relief after two consecutive years of financial losses, including a post-tax loss of N164.6 billion in the prior year.

The stability in the dollar-to-naira exchange rate played a crucial role in enabling the local subsidiary of the global food giant to reverse its trend of losses. These losses had previously impacted shareholder funds negatively in 2023 and worsened in 2024.

According to the company's audited financial statements released on Wednesday, the foreign currency translation loss, which was N290.7 billion in 2024, was reduced to zero in the year under review. This significant improvement helped the manufacturer of popular brands like Milo, Maggi, Golden Morn, and Nescafé to cut its net finance costs by an impressive 85 percent.

The naira's exchange rate in 2025 was notably more predictable, starting the year at 1,500 to a dollar and closing at 1,429. This contrasted sharply with the preceding two years, which saw substantial currency devaluations, impacting import-dependent businesses like Nestlé Nigeria.

In response to currency volatility, Nestlé Nigeria, which historically relied heavily on imported raw materials, has been strategically shifting towards local sourcing. The company has been incorporating substitutes such as sorghum, cassava, soya beans, and spices into its production processes.

The company's revenue saw a substantial increase of 26 percent, reaching N1.2 trillion, bolstered by improved domestic sales. Additionally, export sales to countries including Ghana, Ivory Coast, Burkina Faso, and South Africa experienced a 55.9 percent growth, contributing N10.2 billion to the company's turnover.

Wassim Elhussein, the CEO, stated that the enhanced performance has positively influenced the company's equity position. He noted that retained earnings, which were negative at N243.2 billion in 2024, were reduced by 53.6 percent to N112.8 billion in 2025.

Elhussein further added that the company plans to continue focusing on cost efficiencies to support its growth strategy, anticipating a more stable economic environment in the coming year.

Profit before tax for the period stood at N166.8 billion, a significant improvement from the pre-tax loss of N221.6 billion recorded in the previous year.

Total assets saw a slight decrease of 1.5 percent, amounting to N846.2 billion, primarily due to reductions in prepayments and property, plant, and equipment.