Nestlé Côte d’Ivoire Profit Falls 21% in Q3 2025 on Rising Input Costs
TLDR
- Nestlé Côte d’Ivoire, a subsidiary of the Swiss multinational Nestlé Group, reported a 21.3% drop in net profit for the third quarter of 2025 to 11.9 billion CFA francs (about $21 million)
- The decline was largely driven by higher input costs, particularly for milk and cereals, which make up a significant portion of its production costs
- The company said persistent inflation and elevated logistics expenses continued to weigh on profitability
Nestlé Côte d’Ivoire (BRVM: NTLC), a subsidiary of the Swiss multinational Nestlé Group, reported a 21.3% drop in net profit for the third quarter of 2025 to 11.9 billion CFA francs (about $21 million), according to its financial report released Tuesday. The decline was largely driven by higher input costs, particularly for milk and cereals, which make up a significant portion of its production costs.
Revenue edged up 1.36% to 173.4 billion CFA francs, while operating income fell 15.9% to 19.7 billion. The company said persistent inflation and elevated logistics expenses continued to weigh on profitability. This marks a slowdown from 2024, when net profit had risen 9.6% to 18.1 billion CFA francs on the back of post-pandemic demand recovery and growing exports to the Sahel.
Managing Director Mohamad Itani said the company remains “on a positive trajectory,” emphasizing ongoing cost-optimization and investments in local production capacity, including the Yopougon and Zone 4 plants.
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Points clés à retenir
Nestlé Côte d’Ivoire’s third-quarter results underscore the challenges faced by food manufacturers amid inflationary pressures and high operating costs. Although sales volumes held steady, rising raw material and energy prices eroded margins across key product lines. The modest increase in revenue suggests resilient consumer demand, but profitability remains under pressure. The launch of new products such as Cerelac 200g and continued factory modernization highlight Nestlé’s efforts to sustain long-term growth through innovation and efficiency. In a market characterized by high import dependence and volatile input costs, the company’s local sourcing and cost-control strategies are increasingly critical. Nestlé expects a gradual recovery in margins by the fourth quarter of 2025 as efficiency programs take effect and regional exports stabilize. The results reflect broader trends in West Africa’s fast-moving consumer goods sector, where firms are balancing inflation management with the need to maintain affordability and brand competitiveness.
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