Nestlé Nigeria’s Stock Rises by Over 70% in 2026, Presco Reverses Trend

News in Brief:

-Nestlé Nigeria Plc is driving strong market momentum in 2026 with over 70% year-to-date growth, supported by its return to profitability and improved macroeconomic conditions.

-Palm oil players like Presco Plc saw short-term declines despite solid long-term performance, reflecting market corrections amid otherwise strong fundamentals.

Nigeria’s consumer goods and agribusiness stocks posted mixed performance in the week of March 16–20, 2026, as strong year-to-date gains in major companies contrasted with short-term corrections across the market.

Nestlé’s Recovery Drives Investor Confidence

Nestlé Nigeria Plc stock has surged by 73.39% year-to-date and gained 4.46% the review week to close at ₦3,395. The company’s strong market performance follows a major financial turnaround in 2025, when it returned to profitability with a net income of ₦105 billion after a ₦164.6 billion loss the previous year.

This recovery was largely driven by exchange rate stability, which eliminated foreign exchange losses and reduced finance costs by 85%. Improved domestic sales and a 26% revenue increase to ₦1.2 trillion also reinforced investor confidence, alongside rising exports to Ghana, the Ivory Coast, Burkina Faso, and South Africa. Additionally, Nestlé’s gradual shift toward local sourcing of raw materials such as sorghum and cassava has helped cushion the impact of past currency volatility.

Palm Oil Giants Face Short-Term Pressure Despite Strong Outlook

In the palm oil segment, Presco Plc recorded a sharp weekly decline of 18.37% to ₦1,701.1, despite maintaining a 17.32% year-to-date gain. The drop comes after a strong 2025 performance, when Presco nearly doubled profits to ₦138.1 billion, supported by higher crude palm oil prices, increased sales volumes, and expansion activities such as its Ghana acquisition. However, rising finance costs tied to increased borrowing have weighed on short-term sentiment.

Similarly, Okomu Oil Palm Plc held steady during the week with no price movement but retains a robust 61.19% year-to-date gain. The company benefited from strong margins and operational efficiency in 2025, outperforming Presco in profitability metrics despite generating lower revenue. Analysts remain optimistic about both firms, citing sustained demand, improved yields, and operational scale as key drivers for continued growth in 2026.

Elsewhere, Union Dicon Salt Plc continues to stand out with a 111.43% year-to-date gain, while Zichis Agro Allied Industries Plc returned from a one-month suspension with about 50% slash in value. Livestock Feeds Plc also posted a 12.50% weekly gain, reflecting sustained demand in the livestock value chain.

Overall, the market reflects a blend of strong fundamentals and short-term volatility. While Nestlé Nigeria’s recovery highlights the impact of macroeconomic stability and operational adjustments, fluctuations in palm oil stocks like Presco underscore ongoing market sensitivity to financing costs and profit-taking, even amid solid long-term growth prospects.