Nestlé Nigeria reports 28% profit growth in H1 2026
Nestlé Nigeria recorded its seventh consecutive profitable quarter while strengthening its balance sheet and advancing plans for a new water business joint venture.
NIGERIA – Nestlé Nigeria Plc has reported strong financial results for the first half of 2026, posting double-digit revenue growth, higher profitability and a significantly improved balance sheet as the company continued its recovery from the foreign exchange challenges of recent years.
The company recorded revenue of N650.76 billion (US$477.69M) for the six months ended June 30, 2026, representing a 12% increase from the N581.12 billion (US$426.5M) reported during the same period in 2025.
Profit after tax rose by 28% to N64.78 billion, compared with N50.57 billion (US$37.11M) a year earlier, while profit before tax increased by 43% to N126.77 billion (US$93.04M) from N88.39 billion (US$64.86M).
The results marked Nestlé Nigeria’s seventh consecutive profitable quarter since the company returned to profitability in the fourth quarter of 2024 following a period of significant foreign exchange losses.
The company’s financial position also improved considerably during the period. Shareholders’ equity increased to N77.6 billion as of June 30, 2026, compared with N12.9 billion at the end of December 2025, reflecting continued efforts to strengthen the balance sheet.
Operating profit increased by 8% to N141.36 billion (US$103.73M) from N130.44 billion (US$95.72M) in the corresponding period of the previous year, while gross profit rose to N258.52 billion from N224.95 billion despite continuing inflationary pressures and higher input costs.
Cost of sales climbed to N392.24 billion as the company continued to contend with rising production expenses. However, revenue growth helped maintain profitability.
A significant contributor to the stronger performance was the improvement in finance income. Finance income increased sharply to N33.26 billion from N1.12 billion a year earlier, while finance costs rose slightly to N47.86 billion from N43.17 billion. As a result, net finance costs fell substantially to N14.60 billion from N42.05 billion.
Alongside the earnings announcement, Nestlé Nigeria disclosed plans to transfer its water business into Peranel, a newly established global joint venture between Nestlé S.A. and private equity firm Platinum Equity.
The transaction remains subject to regulatory approvals and shareholder consent and is expected to be completed during the first half of 2027.
In a regulatory filing submitted to the Nigerian Exchange Limited, the company stated: “The proposed transaction does not affect or alter the shareholding of Nestlé in Nestlé Nigeria.”
The company added that shareholders would continue to receive updates as the process advances.
The restructuring forms part of Nestlé S.A.’s broader strategy to strengthen its focus on higher-growth categories while creating a dedicated platform for its global water and premium beverage businesses.
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