Wednesday , September 28 2022
Nestlé Nigeria Makes N40 Billion Profit as Revenue Rises by 22.6% in 2021

Nestlé Nigeria Makes N40 Billion Profit as Revenue Rises by 22.6% in 2021

Nestlé Nigeria Plc, the local unit of Swiss-based world’s largest food and beverage company Nestlé S.A., reported sales in the sum of N351.8 billion for last year, more than a fifth higher than that of 2020, the firm’s audited financial statements showed this week.

Gross profit for the year stood at N 132.4 billion, compared to N 119.2 billion during the previous year. The Company posted profit after tax of N 40.0 billion for the year

Its pre-tax profit inched up to N61.9 billion, improving by 2 per cent, while net profit was 2.1 per cent better than previous year’s at N40 billion.

The bulk (98.5 per cent) of the manufacturer’s revenue for the year came from Nigeria, while the rest was contributed by exports to a couple of markets within the West Africa region.

Chiefly on account of a jump of 31.2 per cent in raw materials and consumables spending, cost of sales accelerated from N222.7 billion to N279.9 billion, taking a hefty bite at earnings.

This combined with a jump in finance costs by nearly threefold slowed the pace of profit growth despite a sizeable expansion in sales.

With a 66.2 per cent stake, Nestlé S.A. majority-owns Nestlé Nigeria with a shareholding equivalent to 524.6 million units as of the end of December, according to the company’s annual report published by the Nigerian Exchange Limited.

Read More: Nestlé Nigeria: Empowering Rural Women Project Moves to South East

Nestlé Nigeria’s board announced in a separate
statement on Tuesday a proposal for a cumulative final dividend of N20.2 billion (N25.50 per share for 2021), bringing its total payout for the year to N40 billion (N50.50 per share).

Commenting on the results, Mr. Wassim Elhusseini, Managing Director and CEO of Nestlé Nigeria PLC, said, “We commend everyone in our organisation for their contributions to the attainment of this impressive results in these challenging times. It is a testament of the consistent dedication and commitment of our employees to ensure that we
continuously deliver value for our shareholders, our consumers, and the communities in which we operate. “

“In 2022, our focus remains on ensuring the safety and wellbeing of our employees, as well as providing affordable nutrition to enable consumers to nourish their families daily, while we work together to benefit mankind and our planet. We will continue to push the boundaries of what is possible with foods, beverages, and nutritional solutions to enhance quality of life and contribute to a healthier future for everyone today and for generations to come.”

About Bukola Olanrewaju

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