Nestlé Ivory Coast Q1 Net Profit Jumps 19% Despite Revenue Drop

AFRICAN STOCKS AND FINANCEMay 22, 2025 at 10:13 AM UTC

TLDR

Nestlé Côte d'Ivoire (BRVM: NTLC), the local unit of the Swiss food giant, reported a 19% increase in first-quarter net profit despite an 11% decline in revenue
Operating profit jumped 38% to 9.5 billion CFA francs ($16.1 million) from 6.9 billion CFA francs ($11.7 million), showing strong margin improvement despite the revenue decline
The company said the revenue drop was due to slower export business but noted strong local market performance, particularly in culinary products and dairy items

Nestlé Côte d'Ivoire (BRVM: NTLC), the local unit of the Swiss food giant, reported a 19% increase in first-quarter net profit despite an 11% decline in revenue as the company improved operational efficiency. Net profit rose to 5.5 billion CFA francs ($9.3 million) from 4.6 billion CFA francs ($7.8 million) in Q1 2024. Revenue fell to 54.1 billion CFA francs ($91.9 million) from 60.7 billion CFA francs ($103.1 million).

Operating profit jumped 38% to 9.5 billion CFA francs ($16.1 million) from 6.9 billion CFA francs ($11.7 million), showing strong margin improvement despite the revenue decline. The company said the revenue drop was due to slower export business but noted strong local market performance, particularly in culinary products and dairy items. Management highlighted successful cost optimization efforts that boosted profitability.

Nestlé Ivory Coast operates manufacturing facilities in Abidjan and Yopougon, producing products for both domestic consumption and regional export. The company serves markets across West Africa from its Ivorian base. CEO Mohamad Itani said the results demonstrate resilience in challenging market conditions while maintaining focus on local consumer needs.

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Key Takeaways

Nestlé Ivory Coast is a key subsidiary of Nestlé's broader African operations, manufacturing popular brands including Maggi seasonings, Nescafé coffee, and dairy products tailored for local tastes. The company faces headwinds from currency volatility and supply chain pressures affecting input costs. However, Ivory Coast's growing economy and urbanization drive demand for packaged foods and beverages. West African food companies are adapting strategies to focus more on domestic markets as export challenges mount. This shift requires balancing affordability with margin preservation in price-sensitive consumer segments. Nestlé's global expertise in nutrition and food technology gives it competitive advantages in developing products suited to local preferences. The company continues investing in manufacturing capacity and distribution networks to capture growth opportunities across the region despite near-term export challenges.

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