Nestle Nigeria Plc has posted a profit before tax of N19 billion in the first three months of the year.
The company’s results on the Nigerian Stock Exchange (NSE) showed that profit before tax, increased by 40.18 per cent from N13.64 billion to N19.121 billion. Profit after tax improved by 49.27 per cent from N8.605 billion to N12.846 billion, translating to earnings per share of N16.21, compared to N10.86 in Q1, 2018.
The company’s revenue for the period inched 5.19 per cent up from N67.463 billion to N70.966 billion. Cost of sales dropped by 5.29 per cent to N39.497 billion from N41.705 billion, resulting in gross profit of N31.468 billion, higher than N25.757 billion in the corresponding period of 2018.
Marketing and distribution expenses increased by 14.86 per cent from N9.029 billion to N10.371 billion; even as administrative expenses dropped by 8.97 per cent from N2.208 billion to N2.01 billion, leading operating profit at N19.086 billion, up by 31.46 per cent from N14.519 billion.
Finance income, being interest income on bank deposits increased to N504.003 million from N281.299 million, while finance cost dropped from N1.159 billion from N469.353 million.
In the first quarter of the 2019, the company said it has continued its emphasis on creating demand as well as strengthening brand loyalty programs to increase market penetration, saying it continued to focus on Creating Shared Value for society and its shareholders by delivering high quality nutritious products to consumers and contributing to the growth of the local economy through local sourcing and increasing access to clean drinking water in the communities where it operates.
Speaking on the results, managing director & CEO of Nestle Nigeria, Mr. Mauricio Alarcon, said, “We are pleased with the sustained growth of our company, the loyalty of our consumers and the discipline and dedication of our people to provide tastier and healthier foods and beverages,”
Looking forward to the rest of 2019, he said “We are optimistic that our current business model will keep delivering satisfactory results to our shareholders and to society in line with our Creating Shared Value principle.
“Providing high-quality and affordable nutritious products which meet the needs and preferences of our consumers will remain our priority as we help build thriving, resilient communities through sustainable local sourcing and continuous product innovation.”