Nestle posts N121b revenue, N16.5b half year profit
Nestle Nigeria Plc has posted a revenue of N121.9 billion, and Profit After Tax (PAT) of N16.5 billion in its half year operations.Specifically, the company’s unaudited half-year result showed 52 per cent rise in revenue from N80.4 billion in 2016 to N121.9 billion in 2017.
Similarly, its profit rose to N16.5 billion, higher than N535.8 million achieved ion the corresponding period in 2016.The company attributed the improved performance to the loyalty and trust of its consumers in the brands, as well as the firm’s strategic distribution network.Its Gross profit stood at N48 billion, compared with N32 billion in 2016 while operating activities improved from N14 billion in 2016 to N26 billion.The Managing Director of the company, Mauricio Alarcon said: “We are particularly pleased with the growth which is an affirmation of the loyalty and trust of our consumers in our brands. The result is also due to the hard work of our people, and our distribution network.”“The Board and the management remain confident that our strategic roadmap will continue to leverage on the potential of the business and the Company will further increase investments behind brand and route-to-market activities while proactively managing input cost pressures.”
The Chairman of the company, David Ifezulike, during the 2016 yearly general meeting held in Lagos recently, told the shareholders that 2016 was a challenging year due to scarcity of foreign exchange, devaluation of the naira, and unfriendly economic policies, and a host of others.Ifezulike said that scarcity of foreign exchange and devaluation of the nation’s currency led to increase in the Nestle’s foreign loans portfolio. The chairman noted that the company was considering a lot of investment ideas such as spreading to the South-East, and South-South, saying that it would declare public at the appropriate time. He explained that the company employed 111 new employees in 2016 despite the challenging operating environment.He said that Nestle remained fully committed to the long-term potential of its business in Nigeria.The company posted a turnover of N181.9 billion in the review period compared with N151.3 billion in 2015, an increase of 20 per cent. Its operating profit stood at N38.2 billion in contrast with N33.7 billion in the preceding year representing a growth of 13 per cent.