NESTLE
Investo's verdict, shared with you
Nestlé Nigeria is a structurally dominant consumer staples franchise executing a credible earnings recovery: H1 2026 revenue grew 12% year-on-year to ₦650.8bn with profit before tax up 43% to ₦126.8bn, marking seven consecutive profitable quarters since Q4 2024. The FY2023–2024 losses were driven entirely by non-cash, unrealised FX revaluation losses on USD-denominated borrowings following naira devaluation — the operating business never broke down — and the balance sheet is now visibly repairing as that FX exposure unwinds. At ₦2,750, the stock trades at 20.8x our normalised EPS of ₦132.42, modestly above our blended fair value of ₦2,750 (mechanically at-the-money), leaving limited near-term upside but no compelling reason to exit a high-quality franchise.
Verdict published 2026-10-26 · fundamentals through H1-2026 · reviewed as the data changes
Published with 1 open flag · confidence downgraded
Implied book multiple is far from the peer group
At the computed value this company would trade at a P/B a long way from its sector median. Either the book-value input or the peer anchor is unreliable.
Implied P/B at base 168.95x is 31.23x the sector median 5.41x.
Source: NGX live market data · Investo intelligence. Educational only — not financial advice.