WED OCT 29 2025-theGBJournal| Nestlé, key food and beverage company in Nigeria on Tuesday reported profit after tax of N21.91 billion in Q3-25, a sharp rebound from the pre-tax loss of N7.58 billion recorded in Q3-24.
This performance lifted pre-tax profit for 9M-25 to N72.48 billion, compared to a pre-tax loss of N184.27 billion in 9M-24, despite a higher effective tax rate of 43.4% (9M-24: 27.8%).
“The results for the nine months signify the sustainability of our return to profitability since the fourth quarter of 2024. The topline growth of 33% during this period, along with a profit after tax of N72.5 billion, clearly illustrate that our dedication to operational excellence and our robust fundamentals are producing the desired outcomes,” said Mr. Wassim Elhusseini, Managing Director and CEO.
”Nestlé Nigeria’s nine months 2025 results underscore the company’s resilience and operational effectiveness, positioning it for continued success in navigating challenges and seizing future opportunities.”
Nestlé earnings per share (EPS) came in at N27.64, (vs loss per share of N9.56 in Q3-24) bringing 9M-25 EPS to N91.44 (vs loss per share of N232.47 in 9M-24).
The performance for the period was driven by pricing discipline, mild volume recovery and FX tailwinds, as the company recorded FX gains to the tune of N17.62 billion compared to FX loss of N21.58 billion in Q3-24.
Revenue advanced modestly by 17.5% y/y in Q3-25 (9M-25: +33.0% y/y), driven by steady growth across the Food (+20.8% y/y | 65.1% of revenue) and Beverages (+11.8% y/y | 34.9% of revenue) segments. We attribute the modest growth to mild volume recovery amid strong pricing discipline.
NESTLE’s gross margin expanded by 301bps y/y to 33.6% in Q3-25 (9M-25: +594bps y/y to 37.0%), supported by modest topline growth and stronger cost optimization across raw material sourcing and production efficiency.
However, EBITDA margin contracted by 89bps y/y to 20.1%, primarily due to a sharp rise in consumer promotional expenses (+374.3% y/y to N18.16 billion), as the company intensified marketing efforts to sustain brand competitiveness and stimulate volume recovery in a still-fragile demand environment.
Nonetheless, 9M-25 EBITDA margin improved to 23.6% (+406bps y/y), underscoring sustained margin recovery driven by pricing gains and easing cost pressures.
The company benefited from sustained FX tailwinds, posting significant foreign exchange gains of N17.62 billion in Q3-25, compared to FX loss of N21.58 billion in Q3-24.
This markedly reduced finance costs by 76.5% y/y, bolstering profitability and driving a strong rebound in profit before tax to N39.56 billion from a loss of N3.08 billion in the corresponding period of 2024FY.
Wassim Elhusseini, looking ahead said the company remains focused on enhancing its margin management initiatives, accelerating transformation of the business, while investing in programs that create sustainable value for all stakeholders, starting from our employees, consumers and extending to our communities and partners across our value chain.
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