…Nestlé Nigeria Water Unit to Join Global ‘Peranel’ Carve-Out Pending Approvals
Nestlé Nigeria Plc reported a 43.4% year-on-year surge in pre-tax profit for the first half of 2026, driven by sustained double-digit top-line revenue growth, disciplined cost management, and balance sheet stabilization.
Profit before tax reached ₦126.8 billion for the six months through June 30, up from ₦88.4 billion in H1 2025. Net profit for the period rose 28.1% to ₦64.8 billion. Group revenue expanded 12.0% year-on-year to ₦650.8 billion, underpinned by brand resilience across its consumer food and beverage portfolio.
The performance marks the consumer goods manufacturer’s seventh consecutive quarter of profitability since returning to net profit in Q4 2024 following previous foreign exchange devaluation shocks. Total equity recovered significantly to ₦77.6 billion at the end of June 2026, up from ₦12.9 billion at year-end 2025.
Operational Efficiency and Net Finance Relief
Operating profit edged up 8.4% year-on-year to ₦141.4 billion, reflecting cost discipline and margin management across manufacturing operations. Gross profit margins expanded to 39.7% from 38.7% in H1 2025 as revenue growth outpaced the 10.1% rise in direct cost of sales.
Below the operating line, pre-tax performance was bolstered by a sharp moderation in net finance costs, which fell 65.3% to ₦14.6 billion (down from ₦42.0 billion in H1 2025):
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Finance Income: Rose to ₦33.3 billion from ₦1.1 billion in the prior period, driven by improved interest returns on cash deposits.
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Finance Expenses: Finance costs increased modestly to ₦47.9 billion from ₦43.2 billion.
Effective income tax expenses for the half-year stood at ₦62.0 billion, translating to an effective tax rate of 48.9%.
Parent Global Realignment: Waters Unit Carve-Out
Concurrently, Nestlé Nigeria’s majority shareholder, Nestlé S.A., announced an exclusive agreement with private equity firm Platinum Equity to create Peranel, a 50/50 global joint venture encompassing Nestlé’s waters and premium beverages portfolio.
The new entity—to be headquartered in Paris—will control a portfolio of over 30 global and regional brands across 120 countries, including San Pellegrino, Perrier, Acqua Panna, and Nestlé Pure Life.
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Local Asset Transfer: Subject to local regulatory and shareholder approvals, Nestlé Nigeria will transfer its domestic waters business to Peranel for adequate cash consideration.
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Shareholding Unchanged: The corporate transaction will not alter Nestlé S.A.’s parent equity stake in Nestlé Nigeria PLC.
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Closing Timeline: The transaction is slated to close in the first half of 2027 following employee consultations and regulatory ratifications.
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