Nestle Nigeria Plc has offered a final dividend per share of N27.50. This is contained in its 2017 financial year report. The share was in addition to the interim dividend of N15 paid during the year in review, bringing total dividend to N42.50, retaining a mere N0.05 of the earnings per share of N42.55. At the end of 2016, the board had paid N10 final dividend per share. It must be noted that the N15 interim dividend (comprising N13.00 and N2.00 from the balance of the pioneer profits as at December 31, 2015 and retained earnings for the period respectively.
Registrars of members for the dividend closes May 7, 2018, payment date 23, 2018 and Annual General Meeting (AGM) is scheduled for May 22, 2018 in Lagos. On Friday March 2, 2018 Nestle’s share price fell N42.00, or 2.91 percent each as it was presented at the close of the trading session. According to the result, revenue grew by 34 percent from N181.91 billion to N244.151 billion; out which the food segment remained the biggest contributor at N154.226 billion or 63.16 percent, from N113.377 billion in 2016; while the beverage segment yielded N89.925 billion from N68.533 billion.
By geography, Nigeria contributed the lion’s share of turnover at N241.122 billion, as against N180.004 billion; followed by Ghana’s N2.648 billion from N974.51 million. Cost of sales for the period grew from N106.583 billion to N143.28 billion; bringing gross profit to N100.871 billion, as against the previous N75.327 billion.
Marketing and distribution expenses rose from N28.775 billion to N35.157 billion; just as administrative expenses climbed to N10.015 billion from N8.338bn; translating to operating profit of N55.698 billion, up from N38.213bn. Personnel expenses rose to N22.758 billion from N20.817 billion; the bulk of which was salaries, wages and allowances of N11.322 billion from N10.967 billion; followed by other personnel expenses of N5.754 billion, up from N4.058 billion.
Finance income climbed to N6.239 billion from N4.199 billion, being interest income on bank deposits; just as interest expense on financial liabilities fell to N3.94 billion from N4.577 billion; net foreign exchange loss dropped from N16.286 billion to N11.168 billion; bringing finance costs to N15.109 billion from N20.864 billion. This brought net finance cost to N8.869 billion, up from N16.664 billion.
Profit before tax therefore closed 117 percent higher from N21.548 billion to N46.828 billion; while income tax expense was flat at N13.104 billion, as against the N13.623 billion reported in 2016; while profit after tax grew by 326 percent from N7.924 billion to N33.723 billion, out of which the directors have proposed a dividend of N19.816 billion for shareholders’ approval at the annual general meeting, up from N15.07 billion.