Nestle Nigeria Reports Strong Q1 2025 Recovery with N51.15 Billion Pre-Tax Profit

Nestle Nigeria Plc has demonstrated a remarkable financial turnaround, posting a pre-tax profit of N51.15 billion in the first quarter of 2025. This represents a significant recovery from the N196.086 billion loss recorded in the same period last year, signaling growing stability in the company’s performance.

The unaudited financial results also reveal a post-tax profit of N30.178 billion, marking an impressive 121% year-on-year growth. This positive performance follows the company’s return to profitability in Q4 2024.

Key Financial Highlights: Q1 2025 vs. Q1 2024

• Revenue: N294.885 billion (+60.71% YoY)
• Cost of sales: N175.163 billion (+30.31% YoY)
• Gross profit: N119.722 billion (+143.99% YoY)
• Marketing and distribution expenses: N34.855 billion (+76.58% YoY)
• Administrative expenses: N11.003 billion (+30.47% YoY)
• Operating profits: N74.147 billion (+254.40% YoY)
• Finance cost: N23.466 billion (-89.27% YoY)
• Earnings per share: N38.07 (+121.15% YoY)
• Total assets: N898.924 billion (+4.68%)
• Shareholders’ funds: -N62.257 billion (-32.54%)

Financial Recovery Insights

Nestle Nigeria has maintained its recovery momentum, delivering another profitable quarter following its return to profitability in Q4 2024. The company’s strong performance was driven by:

• A significant increase in sales revenue that outpaced production costs, boosting overall profitability
• Effective cost management despite increased marketing and administrative expenses
• A dramatic reduction in finance costs compared to the previous year

The company saw foreign currency revaluation losses plummet from N191.67 billion in Q1 2024 to just N163 million in Q1 2025, providing a substantial boost to profitability.

Shareholder Value and Market Performance

While shareholders’ funds remain negative at -N62.26 billion, this represents an improvement from -N92.29 billion at the end of December 2024. Other positive indicators include:

• More than doubled earnings per share (121.15% increase)
• 25.7% year-to-date share price gain (reversing last year’s 20.25% loss)
• Continued strong reliance on the Nigerian market for revenue

This financial turnaround positions Nestle Nigeria for potential stronger returns to investors as the company continues its recovery path.

For more details, read the original article on Nairametrics.