Nestle Nigeria Plc has suffered a heavy drop in its 2016 profits compared to the year 2015. The firm’s profit dropped by 67% in 2016 to N7.924bn from N23.73bn recorded in 2015.
Its dividend declared for the period also fell by 31 per cent to N15.06bn from N21.79bn in 2015, a report filed with the Nigerian Stock Exchange said on Thursday.
However, Nestle recorded a growth in revenue to N181.910bn from N151.271bn.
It also recorded a 29 per cent increase in cost of sales from N60bn to N77.5bn; marketing and distribution expenses rose by 11 per cent to N20bn from N18bn; and administrative expenses climbed by 25 per cent to N6.7bn from N5.4bn in 2015.
Nestle’s profit before income tax dropped by 73 per cent to N5.5bn in 2015 from N20.8bn, while income tax expense rose by 40 per cent to N5bn from N3.6bn, it added.