Nestlé Nigeria’s FY’20 profit dips by 14.2% on rising finance cost

Nestlé Nigeria Plc has announced its audited financial results for the year ended December 31, 2020. The company reported revenue of N 287.1 billion in 2020, up by 1.1percent over 2019 low of N284.035billion.

Gross profit for the year 2020 stood at N119.2 billion, down by 7 percent when compared to N 128.1billion recorded in the preceding year. Operating profit of N64.419billion in 2020 against N72.062billion in 2019 represents a decline of 10.6percent.

The company’s finance cost of N4.427billion in 2020 as against N2.267billion in 2019 which represents an increase of 95.3percent impacted negatively on the its profit level. Nestlé Nigeria Plc posted a pre-tax profit (PBT) of N60.638billion in 2020 as against N71.124billion in 2019, which represents a decline of 14.7percent. Profit after tax (PAT) of N39.3billion in 2020 as against N45.683billion in 2019, was down by 14.2percent.

The N1, 350 which Nestlé Nigeria shares were priced at the close of trading session on Tuesday at the Nigerian Stock Exchange (NSE) represents a decline of 10.3percent this year.

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In addition to N25 per share interim dividend already paid in December 2020, the Board proposed final dividend of N 35.5 per share making for a total dividend of N60.5 for 2020. This proposed dividend will be submitted for approval by shareholders at the company’s Annual General Meeting on June 22, 2021. Qualification Date for the dividend is May 21, 2021 while the closure of members’ register is May 24-28, 2021 (both dates inclusive).

Wassim Elhusseini, Managing Director and CEO of Nestlé Nigeria Plc said, “Amidst a very challenging business environment in 2020, we strengthened market leadership across our categories. Thanks to our high performing team, we successfully continued to provide our consumers with high-quality affordable foods and beverages to enjoy every day.”

“In line with our purpose of unlocking the power of food to enhance quality of life for everyone today and for generations to come, we broadened our portfolio in 2020 to help our consumers fulfill their nutrition needs. Our latest innovation is the new GOLDEN MORN Multi-Cereal, fortified with Iron and other vitamins and minerals.”

“Going into 2021 – which portends to be another challenging year – we will continue to focus on keeping our people safe, continued supply of high-quality nutritious foods and beverages to consumers as well as caring for our communities and the planet. We will also keep supporting our business partners as we strengthen our operations to adapt to the rapidly changing reality,” Elhusseini said.