Big Reversal: MTN, Nestle, NBL, 5 Others Swing From N1.09trn Loss To N2.76trn Profit

Foreign exchange stability and ongoing economic reforms have propelled nine major listed companies to a collective N2.76 trillion profit before tax in 2025, reversing a N1.09 trillion loss in 2024.

The stability in the foreign exchange market has been a key factor in the improved profitability of Nigerian companies, as MTN Nigeria Communications Plc and seven Fast-Moving Consumer Goods (FMCG) companies on the Nigerian Exchange Limited (NGX) reported a combined profit before tax of N2.76 trillion in 2025, marking a significant turnaround from the N1.09 trillion loss recorded in 2024.

Out of the eight companies, five migrated from a N1.09 trillion loss in 2024 to a N2.13 trillion profit before tax in 2025, on the back of forex stability in the foreign exchange market and operational efficiency, among other improving economic indicators.

The breakdown of the five companies that recovered in the 2025 financial year includes MTN Nigeria, which declared a N1.7 trillion profit before tax in 2025 from a loss before tax of N550.33 billion in 2024, while Nestle Nigeria posted a profit before tax of N166.85 billion in 2025 as against a N221.59 billion loss before tax reported in 2024.

In the period under review, Nigerian Breweries moved from a loss before tax of N182.92 billion in 2024 to a profit before tax of N161.06 billion in 2025.

Also, Cadbury Nigeria reported a profit before tax of N17.27 billion in 2025, up from a loss before tax of N28.33 billion in 2024, while International Breweries reported a profit before tax of N85.11 billion in 2025, up from a loss before tax of N111.82 billion in 2024.

Similarly, BUA Foods announced a profit before tax of N534.9 billion in 2025, up 88.12 per cent from N284.3 billion in 2024.

On its part, Nascon Allied Industries reported a profit before tax of N48.24 billion in 2025, up 103.98 per cent from N23.65 billion in 2024. This is just as Unilever Nigeria declared a profit before tax of N51.8 billion in 2025, an increase of 128.71 per cent from N22.65 billion in 2024.

LEADERSHIP Sunday learnt that the eight companies posted an estimated N10.84 trillion in revenue in 2025, up 38.7 per cent from N7.82 trillion in 2024.

According to indications, MTN Nigeria, with N5.2 trillion in revenue in 2025, up by 54.9 per cent from N3.36 trillion in 2024, contributed about 44.7 per cent of the total N10.8 trillion in revenue in 2025.

LEADERSHIP Sunday recalls that the Central Bank of Nigeria’s (CBN) foreign exchange market reforms of June 2023 had a severe, immediate and predominantly negative impact on listed companies’ 2023 and 2024 financial year outcomes.

The devaluation of the naira from N461 to N900 against the dollar at the official market in 2023 resulted in massive foreign exchange losses for MTN Nigeria, among others, eroding shareholders’ value and increasing operating costs for companies with dollar-dominated debts or import-dependent supply chains.

The managing director and chief executive officer of APT Securities and Funds Limited, Mallam Kasimu Kurfi, explained that the losses reported by companies were primarily attributed to foreign exchange losses, which differ significantly from operational losses resulting from a company’s core business activities.

Kurfi emphasised the importance of the current stabilisation of the foreign exchange market, as evidenced by the notable strengthening of the naira.

“This positive shift in the forex environment has had a transformative effect on businesses that were previously facing losses. With the naira gaining momentum against other currencies, companies are now likely to transition from reporting losses to achieving substantial profits,” he explained.

He underlined the implications of this shift on the stock market, noting that while some stocks may face challenges, the overall market is buoyed by the increased generosity of many companies in declaring dividends.

“For example,” he said, “BUA Cement made strides by significantly increasing its dividend payout, raising it from N2 to an impressive N10 per share, and Lafarge Africa, which had not declared a N10 dividend in its history, did so for the year ended 2025.”

Kurfi explained that the stability of the exchange rate has played a crucial role in this, especially since most companies rely on imported raw materials.

“ The challenges associated with sourcing US dollars for imports were significant, but the current stability in the exchange rate alleviates some of these pressures,” he said.

On his part, the vice president of Highcap Securities, Mr. David Adonri, expressed optimism regarding the recovery of companies that previously faced significant foreign exchange losses after the naira was floated.

He noted that nearly all these businesses had successfully regained their footing and had returned to profitability.

“Notable corporations such as Nestle, Nigerian Breweries, and Cadbury, along with telecommunications giant MTN, have demonstrated this turnaround and are now enjoying the benefits of renewed financial health.

“Some of these companies have even begun to distribute dividends to their shareholders, a clear indication of their robust recovery and promising growth trajectory. This resurgence is evident in how the market values these companies, with their stock prices experiencing a remarkable uptick,” he stated

Discussing the broader economic landscape, Adonri expressed confidence in these companies’ ability to sustain their growth trends.

Adonri noted that the economy had undergone broad deregulation, allowing market forces to play a greater role.

“For instance, rising crude oil prices are now directly impacting the local cost of petroleum products, and fluctuations in oil prices resonate throughout the economy. This dynamic enables manufacturing companies to adjust their prices accordingly, a strategy that has been well received by consumers.

“Consumers have shown a remarkable ability to absorb these price changes, and as inflation begins to moderate, their disposable income — the money available for purchasing goods and services — has increased. This combination of factors is indicative of a strengthening economic foundation, suggesting that corporate fundamentals will continue to improve in the near term and beyond,” he stated.