FILE PHOTO: The Nestle logo is seen during the opening of the 151st Annual General Meeting of Nestle in Lausanne, Switzerland April 12, 2018. REUTERS/Pierre Albouy/File Photo
…As foreign exchange losses shrink
Nestle Nigeria Plc returned to profit in the first three month of March, driven by strong growth in sales and a significant shrinkage of foreign exchange (FX) revaluation losses.
The consumer goods giant posted profit after tax (PAT) of N30.17 billion in March 2025 from a loss of N142.68 billion as at March 2024.
Revenue increased by 60.70 percent to N294.88 billion in March 2025, from N183.48 billion as at March 2024.
There has been a reduction in foreign exchange losses that is pivotal to the impressive performance. Foreign exchange losses dipped to N163.87 million.
Hitherto, the company had been hit hard by the sudden devaluation of the local currency Naira that bloated the dollar denominated liabilities in the balance sheet.
What this means shareholders will be paid a dividend this year if the company continues on the path of profitability throughout the year as investors crave for dividend paying stocks.
Consumer goods firms are still grappling with rising input costs caused by reed-hot inflation, foreign exchange volatility, and spiraling borrowing costs.
Earnings before interest, taxation, depreciation, and amortisation (EBITDA) surged by 250.40 percent to N82.97 billion as at March 2025.
EBITDA margins increased to 28.10 percent in March 20245 from 12.90 percent the previous year.
