Nestle Nigeria Plc (NESTLE) continues to report strong core operating performance despite persistent macroeconomic challenges. Revenue has been supported by capacity expansion and strategic price adjustments. However, foreign exchange losses stemming from NESTLE's $441.89 million intercompany loan remain a significant headwind. While we maintain our expectation of a net loss for FY'24, we project a return to profitability in FY'25, supported by reduced foreign exchange volatility and continued revenue growth. We have a mostly unchanged 12-month Target Price (TP) of N1,099.89 (previously N1,084.40) and a BUY recommendation on the ticker.
