Nestlé Nigeria restores positive equity as revenue hits N1.2tn

Nestlé Nigeria recorded a major financial rebound, reporting revenue of N1.2 trillion for the year, up from N958.8 billion previously, while also returning to a positive equity position after a deficit period.

Audited results show the company’s equity improved to N12.9 billion from negative N92.3 billion, reflecting stronger earnings performance and improved balance-sheet management.

The firm posted a net profit of N105 billion, a sharp reversal from the significant loss recorded earlier. Operating profit rose by over 34 per cent to N225.4 billion, while profit before tax climbed to N166.8 billion, signalling a broad recovery in core business operations.

Export revenue also strengthened, rising to N10.2 billion from N6.6 billion, highlighting improved regional demand for the company’s products.

The company further strengthened its financial position through the early repayment of $40 million in foreign-currency debt, reducing exposure to exchange-rate pressures and financing risks.

Management noted that improved efficiency, workforce resilience and relative currency stability contributed to the turnaround, helping to stabilise earnings and improve financial health.

Although retained earnings remain negative, the deficit narrowed significantly, suggesting the company could eliminate the shortfall if profitability is sustained. Executives indicated that dividend payments may resume once retained earnings return fully to positive territory.

Looking ahead, the company plans to maintain cost-control measures while increasing marketing investments to expand market share. It also intends to sustain investments in long-term initiatives that support business growth and stakeholder value creation.

The performance underscores how improved operational discipline and a stabilising macroeconomic environment are helping large consumer goods firms recover from recent economic pressures.