COMFORT EKELEME
Nestle Nigeria Plc shareholders, Tuesday in Lagos approved a final dividend of N21.79 billion recommended by the board of the company for the financial year ended Dec. 31, 2017.
The shareholders gave the approval at the company’s 49th Annual General Meeting (AGM) the dividend translated to N27.50 per share against N10 paid in the corresponding period of 2016. They maintained that since 2008, this is the best dividend Nestle has given to its numerous shareholders.They also commended management and board of the company for the team work and successes recorded in the 2017 financial year.
Chief Timothy Adesiyan, Grand Patron of Nigerian Shareholders Solidarity Association, while speaking at the meeting, maintained that one thing that is driving the growth of Nestle is good corporate governance which they have been practicing over the years.
According to him, the recruitment strategy of the company is one that will make every investor know the direction of the company is going. To him, corporate governance strategy of Nestle is such that if it is followed by other companies, Nigeria will be better for investment.
Speaking further, he appealed to the management of the company to ensure distribution of the high yielding seedlings of soya beans to various local governments in the country as part of poverty alleviation programme.
Also speaking, National Coordinator, Progressive Shareholders Association of Nigeria, Boniface Okezie, again demanded the establishment of water factories in Aba.
Another Shareholder, Mr. Nona Awoh who also commended the management and board of the Company, maintained that Nigerians must have a say on how the company is run, adding that the company should as well consider giving bonus to shareholders. On unclaimed dividend issues, he noted that there is need for the company to design a strategy to reach out to shareholders who are affected.
In his statement, Chairman of the company, Mr. David Ifezulike, maintained that revenue increased by 34 per cent and profit after tax increase was 326 per cent, adding that it was a remarkable result considering the high operating costs driven by the increased prices of most raw materials and inputs.He said, “The increase by 34 per cent of our sales in 2017 is evidence that consumers continue to trust our brands, a trust that we will continue to protect as we strive to respond to their needs and their preferences.
“In 2017, our company employed 41 new employees to contribute to our business objectives as we continue to drive greater efficiency across our operations. As at December 2017,our strength stood at 2, 201. We can be sure that the economy will improve and we will take advantage of that and that is why we ensure we offer the best to consumers,” he said.
Nestle Nigeria recently announced its financial results for the first quarter ended March 31, 2018, showing a marginal growth in performance indications. The company, which recorded a jump of 325 per cent in profit after tax for the 2017 financial year
Details of the results showed gross revenue of N67.5 billion in first quarter of 2018, up by 10.7 per cent from N37.7 billion in the corresponding period of 2017. Cost of sales went up by 10.7 per cent from N37.7 billion to N41.7 billion. Profit before tax fell by 4.5 per cent from N14.3 billion to N13.6 billion. A reduction of 15 per cent in tax from N5.9 billion in 2017 to N5.0 billion in 2018, made the company to end the first quarter with higher profit.
Specifically, Nestle Nigeria’s PAT stood at N8.6 billion in 2018, up from N8.4 billion in the corresponding period of 2017. Gross profit margin fell from 38.4 per cent to 38.2 per cent, while net profit margin reduced from 13.7 per cent to 12.8 per cent in 2018.Market operators said if Nestle Nigeria would be unable to improve its performance in the remaining three quarters, it might end the year with lower bottom-lines.
Nestle Nigeria Plc had reported gross revenue of N244.2 billion in 2017, up 34.2 per cent, from N181.9 billion recorded in 2016.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.
For a better society
The post Nestle shareholders laud N21.79bn dividend payout, commend impressive result appeared first on Champion Newspapers Limited.