Nestle Nigeria reports 22% growth in half-year profit to US$72.39m

NIGERIA – Nestle Nigeria Plc reported 22% growth in net profit for the first half of the year ending on 30 June, 2019 to US$72.39 million (N26.2bn) supported by 21% decrease in finance cost.

Revenues during the period increases by a nearly 5% to US$392.09 million (N141.9bn) from US$373.57 million (N135.2bn) in a similar period in 2018.

In the period under review, the company said it’s Profit Before Income Tax also increased by 27% to US$111.63 million (N40.4 billion) this year, from the corresponding year’s result that recorded US$87.87 million (N31.8 billion).

The company which produces Milo, Nescafe, Nestle Pure Life and Golden Morn reported 3.65% growth in revenues across the food segment to US$243.71 million (N88.2bn) while the beverage segment saw a 7% increase in sales to US$148.38 million (N53.7bn).

 “Our company’s growth is the result of consistent investment behind our brands, intensified efforts to communicate with our consumers and continuous investment in route to market to deliver better value to consumers.

“Amid a challenging economic context, we are confident in our company’s capacity to innovate to keep delighting our consumers with nutritionally superior products and foster our people’s ability to win,” the company said in statement.

As the company seeks to maintain its lead in the Nigerian seasoning market, it recently launched a new powder seasoning range, Maggi Signature, available in three flavour variants; Jollof, Miya and Pottages.

On the outlook for the second half of the year, Mr. Mauricio Alarcon, the Managing Director and chief executive of Nestlé Nigeria said that the company will continue to focus on investing in growing its business.

“In line with our purpose which is enhancing quality of life and contributing to a healthier future, we will remain focused on enabling thriving and resilient communities through local sourcing.

He also noted that the company will also be expanding the commercialisation of food and beverages “to deliver accessible and affordable nutrition to more people and strengthening our value chain to gain further efficiencies.”

“In turn, these investments will continue to Create Shared Value for our shareholders and for the people of Nigeria,” he added.

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