By Nse Anthony-Uko
(Sundiata Finance) – Nestle Nigeria has presented its unaudited result for the nine-month ended September 30, 2017, showing remarkably impressive performance, helped by the growth in sales revenue.
The Company’s result released to the investing public, Monday showed that profit after tax grew by 4,641 per cent to N22.9 billion profit compared to N484.6 million reported same period in the year 2016.
Following the impressive performance, the board of management offered a total interim dividend of N11.89 billion, representing N15 per share. The register of members will be closed between November 27 and December 1, 2017, for preparation and payment of the interim dividend.
The company ended the period with N185.2 billion revenue which is higher than N129.4 billion it ended the previous year with, while gross profit was N75.8 billion against N51.9 billion recorded in the year before.
Total operating profit for the period rose to N43.0 billion from N25.3 billion posted in the year 2016 while net finance costs reduced to N8.6 billion against N19.8 billion in the year before.
Also, the Company recorded total assets moved from N159.4 billion compared to N169.5 billion recorded in the year 2016 while total liabilities was N113.4 billion versus N138..7 billion in 2016.
Commenting on the performance, the Managing Director of Nestle, Mr. Maurico Alarcon described the revenue growth as an affirmation of consumer loyalty and trust in the brands, despite the pressure on disposable income and tough marketing conditions, besides the pricing effect of last year.
Net profit, he added, was substantially impacted by the internal cost saving initiatives, operating efficiency and significant drop in net financing costs.
Alarcon expressed the board and management’s commitment to unlocking the potential of the business, supported by a strategic roadmap, just as it would increase investments behind the brands and route-to-market activities, and continue to proactively management input cost pressure.
He noted that Nestle was unable to declare interim dividend in 2016 saying, however, that the Company is back to declaring interim dividends. He said the development was possible because of the strength of the Company’s performance.
He noted that the level of the interim dividend was based on the Company’s earnings per share, which is N21, adding, “we are able to declare an interim dividend of N15, showing that the Company is in a solid position.”
Alarcon however noted that the revaluation of loan in foreign exchange affected the Company’s performance in 2016, saying the Company is fully back to profit to the level of 2015.