Makers of essential consumer products, Nestle Nigeria Plc, has released its unaudited financial statement for the first quarter (Q1), 2020.
In a notification seen by Naija247news which was made available to the Nigerian Stock Exchange (NSE), Nestle recorded an approximately 8.7% drop in profit due to increase in administrative and distribution expenses.
Revenue for the period ended March 31, 2020, is about N70.33 billion as against N70.97 billion for the corresponding period in 2019. This represents a 0.9% decrease.
Cost of sales for the first quarter of 2020 is N38.67 billion, as against N39.50 billion that was recorded for the corresponding period in 2019. This represents a 2.1% drop over what was achieved the previous year.
Gross profit for the period ended March 31, 2020, shows a slight improvement. Gross profit for Q1 2020 is N31.66 billion, as against N31.47 billion that was recorded for the corresponding period for 2019.
This represents a 0.6% increase.
Profit before tax for Q1 2020 is N17.45 billion as against N19.12 billion that was achieved for the same period in 2019. This shows an 8.7% decline.
Profit after tax for Q1 2020 is about N11.20 billion, as against N12.85 billion that was achieved for Q1 2019. This shows a 12.84% decline.
Earnings per share for the multinational firm dropped from N16.21 in 2019 to N14.21 in 2020.
Although there was a slight drop in turnover when comparing the figure for 2019 and 2020, a cursory look at the unaudited financial statement shows that the major cause of the drop in profit can be attributed to the increases in administrative expenses and distribution, sales & marketing expenses.