Consumer goods giant Nestle Nigeria Plc swung back to profitability in the first nine months of the year, boosted by price increases implemented to combat margin erosion as well as stability foreign exchange market.
The company posted profit after tax (PAT) of N72.48 billion as at September 2025, from a loss of N184.20 billion as at September 2024.
Finance costs dipped by 85.42 percent to N55.17 billion, which helped bolster operating performance.
Negative shareholders’ fund reduced to N19.70 billion in the period under review from N92.29 billion the previous year.
The company’s revenue was up 32.95 percent to N884.53 billion as at September 2025 from N665.28 billion as at September 2024.
Sales got a boost from the product that the consumer goods giant introduced as it reduces exposure to foreign currency loans that are susceptible to movement in the interest rate.
Operating margin increased to 20.50 percent in the period under review, from 16.60 percent the previous year. The company’s bold efforts in sourcing raw material locally is taming the cost of production amid vagaries of macroeconomic shocks. Manufacturers who import their raw material components to meet production are exposed to imported inflation.
Fixed asset turner ratio improved to 0.486 in September 2025 from 0.403 the previous year. In nutshell, the fixed asset turnover of 0.48 means that for every Naira invested in fixed assets, a return of almost N1 is earned.
Fixed Asset Turnover (FAT) is an efficiency ratio that indicates how well or efficiently a business uses fixed assets to generate sales. This ratio divides net sales by net fixed assets, calculated over an annual period. A higher ratio is better.
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