Nestle Nigeria Records N23.7bn Profit, Offers N29.00 Dividend

With a profit decline in its first quarter 2015 financial result, Nestle Nigeria has posted an impressive result in its full year result ended December 31, 2015.

In a note to the management and stockbrokers of the Nigerian Stock Exchange (NSE) on Wednesday, the company reported profit after tax of N23.736 billion from N22.235 billion reported in the comparable period of 2014, representing an improvement of 6.8 per cent.

Revenue for the period rose by 5.5 per cent from N143.328 billion to N151.271 billion, profit before tax also appreciated by 20.00 per cent from N24.445 billion to N29.322 billion, gross profit improved by 10.0 per cent from N61.229 billion from N67.345 billion

Cash and cash equivalents rose to N12.929 billion from N3.704 billion, representing 249.1 per cent, net assets which was N35.940 billion in 2014 closed at N35.940 billion.
The company is proposing a dividend of N19.00 per ordinary share of 50 kobo in addition to N10.00 interim dividend paid last year.

Earnings per share for the year stood at N29.05 as absents N28.08
Declared dividend represents the interim dividend declared during the year from the pioneer profit as at year end December 1, 2014 plus dividend proposed for the preceding year but declared during the current year.

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The director of the company proposed a final dividend of N19.00 per share as against N17.50 paid in the 2014 financial year. In all the company is paying a total of N29.00 per share as against N27.50 per share recorded in the corresponding period of 2014.
However, the company’s full-year results for 2014, reported turnover increase by 8 percent to N143.328 billion from N133.084 billion in 2013.

Profit before taxation dropped by 6 percent to N24.445 billion from N26.047 billion in 2013. Profit after taxation, PAT, dropped by 0.1 percent to N22.235 billion from N22.258 billion in 2013.
The company recorded 567 per cent rise in interim dividend payout in 2014, valued at N7.926bn against N1.188 billion in 2013. Its total dividend payout rises by 8 percent, to N21.798bn against N20.212 billion in 2013.
This of cause has affected its share price, dropping 21.4 per cent year to date to close at N820.00 per share, from N995.60 per share at which it opened for trading on January this year.