Nestlé Nigeria has returned to profitability in 2025 after posting losses for two consecutive years, helped largely by improved exchange rate stability and the elimination of hefty foreign currency translation losses.
The company reported a net profit of ₦105 billion for the year, a sharp turnaround from the ₦164.6 billion post-tax loss recorded in 2024. A major factor behind the recovery was the disappearance of foreign exchange translation losses, which had amounted to ₦290.7 billion the previous year but fell to zero in 2025, according to its latest audited financial results.
The relative stability of the naira played a critical role. The currency opened the year at ₦1,500 to the dollar and closed at ₦1,429, a far more predictable movement compared to the steep devaluations seen in 2023 and 2024, when the naira depreciated by roughly 70 percent. The calmer foreign exchange environment significantly reduced pressure on the company’s finance costs, which dropped by 85 percent year-on-year.
Nestlé Nigeria’s improved performance also reflects its strategic shift toward local sourcing of raw materials such as sorghum, cassava, soybeans and spices. The company, known for products including Milo, Maggi, Golden Morn and Nescafé, had previously relied heavily on imported inputs, leaving it exposed to currency volatility.
Revenue rose 26 percent to ₦1.2 trillion, supported by stronger domestic demand. Export sales surged 55.9 percent, generating ₦10.2 billion in revenue from markets such as Ghana, Ivory Coast, Burkina Faso and South Africa.
Profit before tax reached ₦166.8 billion, reversing a pre-tax loss of ₦221.6 billion in the prior year. The improved earnings also strengthened the company’s balance sheet, reducing negative retained earnings by 53.6 percent, from ₦243.2 billion in 2024 to ₦112.8 billion in 2025.
Chief Executive Officer Wassim Elhussein said the stronger results have significantly improved the company’s equity position. He added that Nestlé Nigeria will continue to pursue cost efficiencies while positioning for growth in what it expects to be a more stable economic climate.
Despite the return to profit, total assets declined slightly by 1.5 percent to ₦846.2 billion, largely due to lower prepayments and reductions in property, plant and equipment.