Nestle Nigeria Plc has declared a net profit of N43.008 billion for the year ended December 31, 2018.
The company’s results released on the Nigerian Stock Exchange (NSE), yesterday showed that profit after tax grew by 27.53 per cent from N33.72 billion in the year 2017, to N43.008 billion in 2018, while earnings per share rose by 27.52 per cent to N5,426 from N4,255.
The board of director of Nestle proposed a final dividend of N30.517 billion, representing N38.50 per share.
The company said the dividend composed of N34.20 from the profit for the year ended December 31, 2018 and N4.30 from the after tax profit for the year ended December 31, 2009. This is in addition to N20 per share interim dividend already paid during the year. Details of the results showed that revenue for 2018 rose to N266.27 billion from N244.15 billion, representing a growth of 9.06 per cent.
Cost of sales increased by 6.33 per cent from N143.28 billion in 2017 to N152.35 billion, while gross profit rose by 12.94 per cent to N113.92 billion, up from N100.87 billion. Marketing and distribution expenses increased to N43.49 billion, up from N35.16 billion, administrative expenses dropped from N10.02 billion to N9.79 billion, resulting in operating profit of N60.64 billion, up from N55.698 billion. Finance income slumped to N1.716 billion, while finance costs fell from N15.109 billion to N2.606 billion, down by 82.75 per cent.
Total assets up by 10.58 per cent to N162.34 billion as against N146.80 billion posted in 2017, while total shareholders’ equity stood at N50.22 billion higher than N44.88 billion in 2017. Speaking on the results, managing director/CEO of Nestle, Mr. Mauricio Alarcon, said, “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.”
He stated that the company continued to invest in innovation to keep delighting consumers with its iconic brands, saying that the multi-cereal Nestlé Golden Morn Puffs fortified with iron was introduced during the year.
On outlook for 2019, Alarcon, said that “we look forward 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.”