Nestlé S.A pays N112m for additional 80,448 units of Nestle Nigeria

Nestlé S.A, a Swiss multinational food and drink processing company has further increased its equity stake in the Nestle Nigeria Plc in a share deal consummated on the Nigerian Stock Exchange on 7th and 9th of December 2020.

The world’s largest Food & Beverage Company which is the majority shareholder in Nestle Nigeria Plc purchased additional 80,448 units of Nestle Nigeria Plc ordinary shares.

Details of the shares dealings by the insider show Nestlé S.A on December 7, bought 57,310 units of shares of its Nigerian subsidiary at N1, 399.87 per share; while on December 9, it bought 23,138 units at N1, 400 per share. Both share transactions amounted to N112.62million.

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At N1, 400 per share Nestle Nigeria traded on December 9, representing year-to-date (YtD) negative return of -4.8percent, the stock has underperformed the NSE ASI which yields positive return of circa 30percent.

Nestlé S.A is the largest food company in the world, measured by revenues and other metrics. Nestlé’s products include baby food, medical food, bottled water, breakfast cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods, and snacks.

In nine months to September 30, 2020, Nestle grew its revenue to N212.733billion, from N211.347billion in 9M’2019, representing an increase of 0.7percent. Gross Income decreased to N90.025billion from N96.312billion in same period of 2019, down 6.5percent.

Nestle Nigeria’s nine months operating profit printed lower at N50.185billion, from N57.050billion in 9M’2019, representing a decline of 12percent.

Profit Before Tax (PBT) of N49.262billion in 9M’2020 against N 56.554billion in 9M’2019 shows a dip by 12.9percent; while Profit After Tax (PAT) decreased by 13.3percent in 9M’2020 to N31.938billion from N36.841billion in 9M’2019.

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