Goddy Egene
Shareholders of Nestle Nigeria Plc are
to receive an interim dividend of N20 per share for the nine months
ended September 30, 2018. The dividend is 33.3 per cent higher than the
N15 per share the shareholders received in the corresponding period of
2017.
Directors of the company recommended the
interim dividend at their board meeting held on October 29, 2018 to
consider the nine months results.
According to the results, revenue rose
by 9.7 per cent to N203.135 billion, from N183.242 billion in the
corresponding period of 2017.
Cost of sale increased to N116.984
billion, from N109.362 billion, bringing gross profit to N86.149 billion
compared with N75.881 billion in 2017. Marketing and distributive
expenses jumped from N25.26 billion to N29.739 billion, while
administrative expenses fell from N7.535 billion to N7.050 billion in
2018. Net finance cost recorded a major decline of 85 per cent from
N8.606 billion to N1.271 billion.
Hence, profit before tax stood at
N48.088 billion, up from N34.479 billion, while profit after tax
increased by 44 per cent from N22.979 billion to N33.118 billion in
2018.
The company explained that the growth is
the result of its disciplined execution and investments in the
expansion of its route to market.
The Managing Director/CEO, Mr. Mauricio
Alarcon, said: “Our marketing initiatives focused on nutrition
awareness, as our consumers continue to trust us to deliver high
quality, affordable, nutritious food products every day. All of this is
well supported by the dedication and professionalism of our people.”
He added that to sustain “our
performance, we will continue to focus on creating an environment where
our people can grow to their potential while delivering their best
performance. Driven by our purpose of enhancing quality of life and
contributing to a healthier future, we continue to create value for all
stakeholders across our value chain as we source and deliver products
adapted to local preferences.”
The company paid N42.50 per share
dividend for 2017 financial year. While the shareholders said the
dividend was a significant jump from N10 paid the previous year, they
had urged the board to consider giving them a bonus issue in the coming
years.
The Chairman of Nestle Nigeria, Mr.
David Ifezulike, had said that it was commendable that in such an
unstable and challenging environment in 2017, the company delivered
“very solid results across board, recovering from the impact of the
recession in 2016.”
He explained that the dividend pay-out
was in line with the company’s policy of making its shareholders the
ultimate beneficiaries of business growth.
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