Nestle Shareholders Approve N34bn Dividend, Demand Bonus Shares

Shareholders of Nestle Nigeria Plc yesterday approved the dividend of N33.678 billion recommended for the year ended December 31, 2017, which translated to N42.50 per share.

The shareholders, who gave the approval at the 49th annual general meeting (AGM) in Lagos, commended the performance of the company for the year. While they said the dividend was a significant jump from N10 paid the previous year, the shareholders urged the board to consider giving them a bonus issue in the coming years.

Nestle Nigeria recorded gross revenue of N244.2 billion, up 34.2 per cent, from N181.9 billion recorded in 2016. Cost of sales went up 34.4 per cent to N143.3 billion, from N106.6 billion, making the firm to close with a gross profit of N100.9 billion, which was 33.9 per cent higher than the N75.3 billion recorded in 2016. Marketing and distribution expenses rose from N28.77 billion to N35.15 billion, while administrative expenses rose from N8.33 billion to N10 billion in 2017. Net finance costs fell by 46.8 per cent from N16.7 billion to N8.9 billion. Profit before tax settled at N46.8 billion, showing a growth of 117 per cent compared with N21.5 billion recorded in 2016. Profit after tax grew faster by 325 per cent from N7.9 billion to N33.7 billion in 2017.

In his address to the shareholders, Chairman of Nestle Nigeria, Mr. David Ifezulike, said it was commendable that in such an unstable and challenging environment in 2017, the company delivered “very solid results across board, recovering from the impact of the recession in 2016.”

He explained that the dividend payout was in line with the company’s policy of making its shareholders the ultimate beneficiaries of business growth.

According to him, in 2017, Nestle brands remained the leaders in their categories by increasing the focus of the marketing efforts on driving penetration through the popularly positioned products (PPP) strategy and continuing to educate consumers on the benefits of good nutrition delivered by the high quality products.

“The increase by 34 per cent of our sales in 2017 is evidence that consumers continue to trust our brands, trust that we will continue to protect as we strive to respond to their needs and their preferences,” he said.

Ifezulike said the company looked towards 2018 with optimism considering the improving business environment and the confidence of the company in its people and value of its brands.