Nestle Nigeria reports profits growth by 27.5% to US$165.22m

NIGERIA – Nestle Nigeria Plc has posted US$165.22 million profit before tax during its financial year ended 31st December 2018 up from US$129.5 million in its previous year which represents a 27.5% growth.

The company’s turnover during the period under review climbed up to US$736.33 million compared with US$675.14 million posted in 2017 translating to a growth of 9.1%.

Additionally, the Nigeria Stock Exchange (NSE) listed company posted an increase in its gross profit to US$314.96 million against US$279.01 million recorded in 2017 financial year.

Marketing and distribution expenses increased to US$ 120.26 million, up from US$97.23 million, administrative expenses dropped from US$27.71 million to US$27.07 million, resulting in operating profit of US$167.69 million, up from US$154.02 million.

Finance income slumped to US$4.75 million, while finance costs fell from US$41.78 million to US$7.21 million, down by 82.75%.

Commenting on the results, Mr Mauricio Alarcon, the company’s managing director, attributed the performance to the company’s commitment in production of quality products which has subsequently led to continued loyalty of its customers.

“We are pleased with our 2018 results considering the increasingly competitive business environment.

The growth was driven by the continued loyalty of our consumers as we focused on consistently delivering high quality, tasty and nutritious food products adapted to their preferences.

The discipline and dedication of our people also supported this business outcome,” Alarcon said.

Alarcon added that the Nestle Nigeria will continue investing in innovation lead products as it seeks to grow its foot print in the country.

This is marked by its recently launched multi-cereal Nestlé Golden Morn Puffs fortified with iron was introduced during the year.

He further added that despite a challenging business environment, the company would leverage on its capabilities to deliver value to its customers and shareholders in the current financial year to steer up performance.

“We look forward to next year with cautious optimism in view of the challenging business environment.

We will focus on leveraging our capabilities to deliver value to our consumers and our shareholders as we contribute to the growth of the local economy and to improving livelihoods within our communities,” he said.

Total assets up by 10.58% to US$448.91 million as against US$405.94 million posted in 2017, while total shareholders’ equity stood at US$138.87 million higher than US$124.1 million in 2017.

Following the results, the company has declared a final dividend of US$0.11 (N38.50) per share for the financial year in addition to an interim dividend of N20 (US$0.055) already paid by the company.

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