Nestlé Nigeria’s profit after tax rose 28% to N64.78 billion in the first half of 2026, even as the company confirmed its water business will move into Peranel, a new global joint venture between parent Nestlé S.A. and private equity firm Platinum Equity.
Revenue for the six months to June 30 grew 12% to N650.76 billion from N581.12 billion, and gross profit rose to N258.52 billion from N224.95 billion despite higher input costs. Operating profit increased a more modest 8% to N141.36 billion, as cost of sales climbed to N392.24 billion.
The bigger swing came below the operating line. Finance income surged to N33.26 billion from just N1.12 billion a year earlier, while finance costs rose only modestly to N47.86 billion, narrowing net finance costs to N14.60 billion from N42.05 billion. That shift lifted pre-tax profit 43% to N126.77 billion.
Profit after tax grew more slowly than pre-tax profit, as the tax charge for the half rose to roughly N62 billion from N37.8 billion, a steeper climb than earnings themselves. Shareholders’ equity kept rebuilding regardless, rising to N77.6 billion from N12.9 billion at the end of December, extending the company’s recovery from the negative equity position caused by earlier foreign exchange losses.
“We remain optimistic about the outlook,” chief executive Wassim Elhusseini said, citing seven consecutive profitable quarters since the company’s return to profit in the fourth quarter of 2024.
The recovery is playing out alongside a shift in ownership further up the chain. Nestlé’s water business, including brands such as S.Pellegrino and Perrier, will move into Peranel, a new 50:50 venture Nestlé S.A. and Platinum Equity are building to run water and premium beverages worldwide, much as Moët Hennessy’s recent exit from its SirDavis whisky venture showed a similar reshuffling elsewhere in the industry.
Nestlé Nigeria’s local water operations will transfer into the transaction for consideration once Nigerian approvals are secured, though the company has yet to disclose what that consideration will be. The deal will not touch Nestlé S.A.’s stake in the Nigerian company or its listing on the Nigerian Exchange, and Peranel itself will be run from Paris by Muriel Lienau, who currently leads Nestlé’s water and premium beverages unit.
Cadbury Nigeria and Champion Breweries have posted similar first-half numbers this reporting season, with revenue outpacing profit growth across the sector. For Nestlé Nigeria, the open question is what its water business is worth once regulators clear the carve-outs Platinum Equity has built its reputation on, a figure investors will be watching for as the deal moves toward its expected 2027 close.
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