——Target price revised upward

August 13, 2025/CSL Research

Nestle Nigeria Plc reported H1 2025 Revenue of ₦581.12 billion, marking a 42.8% y/y increase from ₦406.97 billion in H1 2024. Growth was driven by strong performances across both business segments:

• Food segment: ₦380.79 billion (+46.1% y/y from ₦260.65 billion in H1 2024)

• Beverage segment: ₦200.33 billion (+36.9% y/y from ₦146.32 billion in H1 2024).

Operating Profit surged 106.8% y/y to ₦130.44 billion (H1 2024: ₦63.08 billion), supported by topline growth and effective cost management. The company also delivered a significant turnaround in Profit After Tax, recording ₦50.57 billion, compared to a ₦176.91 billion loss in H1 2024, largely due to a sharp reduction in foreign exchange losses.

Looking ahead, we project FY 2025 Revenue of ₦1.21 trillion (+26.3% y/y from ₦958.82 billion in FY 2024).

• Food segment is expected to contribute ₦782.78 billion (~65% of total), versus ₦616.47 billion in FY 2024—circa 64% contribution

• Beverage segment: ₦428.34 billion (~35% of total) compared to ₦342.35 billion in FY 2024, about 36% contribution.

Nestle’s Operating Profit is projected to reach ₦267.20 billion (FY 2024: ₦167.88 billion), while reduced FX losses should lift Pre-tax Profit to ₦186.63 billion, reversing the ₦221.59 billion loss in FY 2024.

At the current EV/EBITDA of 8.08x, Nestle trades at a discount to the Middle East and Africa (MEA) peer average of 10.52x, offering significant upside potential. We maintain our BUY rating, revising our target price to ₦2,327.22/share (previous: ₦1,746.68/share).

To read full report, click on the link below​​

​​​​​​​​​NESTLE H1 2025 Company Update.pdf​​​​​​​​​​​​​​​​​​​​​

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