Shareholders of Nestle Nigeria Plc on Tuesday approved a total dividend of N7,926,562,520 which amount to N10 per ordinary share. For Shareholders that have completed their E-Dividend mandated are expected to receive their bank alerts on Wednesday May 24, 2017.
Addressing shareholders at the company’s 48th Annual General Meeting in Lagos, Nestle Nigeria chairman Mr David Ifezulike reminded shareholders on the need to embraced the ongoing E- Dividend mandate management system.
According to him “it is necessary to remind our esteemed shareholders that despite our repeated requests, several shareholders are yet to collect their unclaimed dividend warrants and share certificates”
Commenting on the economy, he said “we welcome the government’s efforts to diversify Nigeria’s non-oil earnings by focusing on agriculture, solid mineral and local sourcing of raw materials for manufacturing”
He urged the government to put adequate measures in place to ensure foreign exchange availability for critical raw material which cannot be sourced locally. Adding that it’s necessary for government to focus on improving the ease of doing business through regulatory reforms to lower costs, eliminate bottlenecks and improve administrative processes.
On the company audited financial for the period ended December 31, 2016, the company revenue increased by 20 percent. Ifezulike explained that notwithstanding the increase in the cost of sales due to higher material costs as a result of currency devaluation, operating profit increased by 13 percent. Pointing out that the profit after tax has been negatively impacted by the revaluation of the foreign loans due to the devaluation of the naira.
For the company outlook in 2017, he said “we are cautiously optimistic that with access to foreign exchange to buy critical raw materials and spare parts that are not available locally, business friendly monetary and fiscal policies, stable power supply, improvement in the ease of doing business, overhaul of the ailing infrastructure and the provision of conducive business environment, our company will courageously face the headwinds in 2017”
However analysis of the company first quarter result for the period ended March 31, 2017 shows that the company is still trying to sustain earnings growth as profit margin dropped by 38 percent as against 49 percent in first quarter of 2016. This was despite a 69 percent growth in gross revenues year on year from N36.1 billion in first quarter of 2016 to N61.2 billion in first quarter of 2017.