May 22, 2026/CSL Report

Nestlé Nigeria Plc reported Q1 2026 revenue of ₦326.1 billion (bn), representing a 10.6% year-on-year (y/y) increase from ₦294.9bn in Q1 2025. The growth was driven by good performances across both operating segments, with the Food segment rising by 6.2% y/y to ₦200.9bn from ₦189.1bn, while the Beverage segment recorded a stronger 18.4% increase to ₦125.2bn from ₦105.7bn in the corresponding period of 2025.

Operating Profit grew modestly by 1.7% y/y to ₦75.4bn, compared to ₦74.1bn in Q1 2025, reflecting slight pressure on operating efficiency arising from elevated costs and operating expenses. Despite this, Profit After Tax improved significantly to ₦39.0bn from ₦30.2bn in Q1 2025, supported by Net foreign Exchange Gains of ₦14.8bn on foreign currency-denominated balances during the period.

Looking ahead, we project FY 2026 Revenue of ₦1.3 trillion (trn), representing a 10.4% y/y increase from ₦1.2trn in FY 2025. The Food segment is expected to contribute ₦858.1bn, accounting for 64.4% of total Revenue, while the Beverage segment is projected to contribute ₦475.2 billion, representing 35.6% of total Revenue. We also forecast Operating Profit to rise to ₦254.5bn from ₦225.4bn in FY 2025, while Pre-Tax Profit is expected to increase to ₦199.7bn from ₦166.8bn.

Although Nestlé currently trades at an EV/EBITDA multiple of 10.54x, slightly below the Middle East and Africa peer median of 11.91x, we believe the upside potential remains limited. Accordingly, we have revised our recommendation to a hold from a buy previously, while raising our target price to ₦3,442.13/s from ₦2,655.34/s.

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

​​​​​NESTLE Q1 2026 Company Update.pdf