Nestlé Nigeria’s 9M pre-tax profit jumps 51.5% to N193.88 billion as net finance costs fall 73%
AI Executive Briefing
Gemini Flash AI~45s readNestlé Nigeria Plc reported a strong financial performance for the nine months ended September 30, 2026, characterized by a 51.5% surge in pre-tax profit. This growth was primarily fueled by a significant reduction in net finance costs and improved gross margins, marking the company's eighth consecutive quarter of profitability.
Context & Background
- ✦The company's financial results reflect the impact of the Nigeria Tax Act 2025, which influenced tax expenses and effective tax rates.
- ✦Nestlé has successfully navigated foreign exchange volatility, utilizing translation gains to offset finance costs and significantly reduce accumulated losses on its balance sheet.
Key Figures & Named Entities
•Wassim Elhusseini, Managing Director and CEO, noted the results represent eight consecutive quarters of profitability.•Pre-tax profit reached N193.88 billion, while revenue hit N976.53 billion for the nine-month period.
Outlook & Next Steps
Investors are expected to monitor whether the company can maintain these improved margins without relying on foreign exchange translation gains and if operating cash flow will recover in future quarters.
Key Takeaways
AI Summary- Nestlé Nigeria recorded a 51.5% increase in pre-tax profit to N193.88 billion for the first nine months of 2026, driven by a 73.2% reduction in net finance costs.
- The company's balance sheet showed significant recovery, with accumulated losses shrinking from N112.78 billion at the end of 2025 to N9.40 billion by September 30, 2026.
- Revenue grew by 10.4% to N976.53 billion, supported by strong performance in both food and beverage segments despite increased marketing and promotional expenses.
Key Facts:October 29, 2026: Nestlé Nigeria filed its unaudited 9-month financial statements with the Nigerian Exchange (NGX).January 1, 2026: The Nigeria Tax Act 2025 became effective, impacting the company's tax expense calculations.March 31, 2026: Nestlé Nigeria's share price reached a high of N3,395.
Editorial Excerpt
Nestlé Nigeria Plc recorded a 51.5% increase in pre-tax profit to N193.88 billion for the nine months ended September 30, 2026, compared with N127.96 billion in the corresponding period of 2025, supported by stronger gross margins and lower net finance costs.
Frequently Asked Questions About This Story
What was the primary driver behind the reduction in Nestlé Nigeria's net finance costs?
The reduction was largely due to a sharp decline in net finance costs by 73.2%, bolstered by N35.34 billion in net exchange gains from the translation of foreign-currency balances.
How did the company's profitability trend over the nine-month period in 2026?
Profit after tax rose by 42.6% to N103.37 billion, with the third quarter specifically showing a 76.2% increase in profit after tax compared to the same period in 2025.
