Prime Business Africa
Nestle Nigeria returned to profitability in 2025 after halting foreign exchange (FX) losses, which plunged the company into a N221.58 billion net loss in 2024.
The company commenced its journey to profitability with a 26 percent increase in revenue last year, which grew from N958.81 billion in 2024 to N1.20 trillion the year after.
Join our WhatsApp ChannelAccording to Nestle’s annual report for the year ended December 31, 2025, the company spent N771.88 billion on production of its products, raising the cost of sales by 18.30 percent compared to the N652.45 billion expended in 2024.
Prime Business Africa noted that Nestle reduced the impact of cost of sales on its turnover, as production costs gulped 63.90 percent of revenue in 2025, compared to the 68.04 percent recorded in the year before.
With the impressive top-line growth, Nestle recorded N435.89 billion gross profit last year, compared to the N306.35 billion recorded in 2024, representing a 42.28 percent increase.
Nestle’s other income also grew by 56.31 percent to N1.15 billion in 2025, surpassing the previous year’s N737.10 million.
In terms of other expenses, marketing and distribution expenses gulped N161.69 billion, rising by 51.32 percent year-on-year, from N106.85 billion, while administrative expenses grew by 53.12 percent, from N32.52 billion to N49.81 billion.
Following the deduction of the expenses, Nestle was left with N225.38 billion operating profit last year, which topped the N167.87 billion earned in 2024, indicating a 34 percent growth.
In addition, the manufacturer saw a 1,159.81 percent growth in finance income, which grew from N3.36 billion in 2024 to N42.42 billion in 2025, driven by over N40 billion foreign exchange (FX) gains.
Also, the financials showed that Nestle recorded zero FX loss last year, resulting in the company recording a 74.29 percent year-on-year decline in finance costs, which dropped from N392.83 billion to N100.96 billion
This led to Nestle recording an 84.97 percent decline in net finance costs, as it dropped from a whopping N389.46 billion in 2024 to N58.53 billion in 2025.
Consequently, Nestle recovered from the N221.58 billion loss before tax recorded in 2024 to achieve N166.84 billion profit before tax (PBT) last year.
Following the recovery, the company paid N61.88 billion in income tax in 2025, after enjoying N56.99 billion tax credit the year before.
This left Nestle with N104.96 billion profit after tax (PAT), compared to the N164.59 billion loss for the year 2024.
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Prime Business Africa is a business, economy and policy news platform founded in 2021 by veteran journalist and media scholar, Dr Marcel Mbamalu, after he left The Guardian as Editor.
Dr Mbamalu, who serves as Founder and Publisher, set up Prime Business Africa to deliver sharp, data-driven reporting on Nigeria’s markets, trade, investment, and governance trends for decision-makers, entrepreneurs, and policy leaders.
He also writes The Bottom Line, a backpage column for Punch Newspaper every Thursday.
Under his leadership, Prime Business Africa combines deep newsroom experience with a focus on accountability journalism, aiming to bridge information gaps between Africa’s private sector and the global economy.
