By Theresa Moses
Nestlé Nigeria Plc delivered a decisive financial turnaround in the year ended 31 December 2025, posting profit after tax of ₦105 billion and restoring positive shareholders’ equity after a year of heavy foreign-exchange losses.
Audited results filed with the Nigerian Exchange show revenue rose 26 per cent to ₦1.208 trillion from ₦958.8 billion in 2024. Gross profit climbed 42 per cent to ₦435.9 billion, lifting the gross margin to 36.1 per cent.
Operating profit increased 34.3 per cent to ₦225.4 billion from ₦167.9 billion, with the operating margin expanding to 18.7 per cent. Profit before tax swung to ₦166.8 billion from a loss of ₦221.5 billion a year earlier.
The single largest driver of the recovery was the sharp reduction in finance costs. These fell from ₦392.8 billion in 2024 to ₦101.0 billion in 2025; a 74 per cent decline as naira volatility eased and foreign-exchange losses subsided.
Finance income rose correspondingly to ₦42.4 billion from ₦3.4 billion, leaving net finance costs at ₦58.5 billion compared with ₦389.5 billion the previous year. The company also completed early repayment of $40 million in foreign-currency-denominated debt, further reducing exposure.
On the balance sheet, total equity moved from a deficit of ₦92.3 billion at the end of 2024 to a positive ₦12.9 billion. Negative retained earnings were halved, falling from ₦243.2 billion to ₦112.8 billion. Total assets stood at ₦846.2 billion, while total liabilities declined to ₦833.3 billion. Cash and cash equivalents improved to ₦35.3 billion. No interim or final dividend was declared for 2025, consistent with the still-elevated accumulated losses. Export sales provided an additional positive signal, rising 56 per cent to ₦10.2 billion.
Fourth-quarter revenue reached ₦323.2 billion, with profit after tax of ₦32.5 billion, confirming the recovery had taken hold by the final months of the year.
Managing Director and Chief Executive Officer Wassim Elhusseini said the results “reflect the strong foundations of our return to profitability since the fourth quarter of 2024… supported by the stability of the naira against the dollar.” He noted that the improved performance had reduced negative retained earnings by 53.6 per cent and expressed optimism that continued profitability would eventually eliminate the deficit and allow the resumption of dividend payments.
For investors and analysts, the 2025 numbers establish more than a simple return to profit. The collapse in net finance costs has restored operating leverage to the P&L, while the swing in total equity from a ₦92.3 billion deficit to a positive ₦12.9 billion has removed an immediate balance-sheet constraint. Negative retained earnings have been cut by more than half to ₦112.8 billion, bringing the company meaningfully closer to the point at which dividend payments can resume.
The recovery remains conditional on two factors: continued relative stability in the naira, which has driven the sharp reduction in FX-related finance costs, and the company’s ability to protect the expanded gross and operating margins (36.1 per cent and 18.7 per cent respectively) against any renewed cost inflation. With non-current borrowings still elevated and residual foreign-currency exposure present, the sustainability of the turnaround will depend on further debt reduction and disciplined cost management. If those conditions hold, Nestlé Nigeria has now rebuilt a financial platform capable of supporting both organic growth and, in time, a return to shareholder distributions.
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