Nestle Nigeria PLC posted a record revenue of 71 billion
May 8, 2019 by admin
Filed under Nigeria Stock Exchange
Nestle Nigeria PLC reported its first-quarter
The total profit came in at N 12.8 Billion beating the estimate of N 8.6 Billion from the previous year. The company recorded a gross profit of N31, 468,870 for the year 2019; marketing and distribution expenses came in at -10,371,484.
Focusing on creating demand and strengthening the brand’s loyalty program is a major concern to Nestle. According to Nestle PLX, “The company also 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”.
Mr. Mauricio Alarcon, Managing Director & CEO of Nestlé Nigeria Plc 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”.
Outlook:
“Looking forward to the rest of 2019, 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 that 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’ the CEO said during the earnings report.
Nestle stock price has been up more than 100
The above statement is in relation to the Q1 2019 report, the Q2 report is due on July 30, 2019.
Food products business is a booming business in Nigeria. Nestle manufactures hydrolyzed plant protein mix and other food products based on its local agricultural raw material.
Nestle food product brands
Maggi
Nestle Golden Morn
Nestle Ideal
Nestle Nido
Milo nestle
Nescafe
Nestle Kit Kat
Nestle Carnation milk
Nestle Gloria
These products are selling at a record high in markets around the world. Nestlé is making money from direct sales, wholesales directly to the reseller, distribution to hotels, and other companies.
This statement for the period ending on March 31, 2019. The company reported N 19,122,202 profit before tax and it did not declare any new dividend price at the time of this report.
Operation result shows that Nestle has a positive quarter. 2019 reported number was up by 66% compared to the reported comprehensive income for the year 2018.
It’s a good practice for directors to be invested in companies that they are associated with. This will ensure that they make the right decisions for stakeholders because their money is also on the line. According to the recent report, only one director owns shares in Nestel company.
Share repurchasing program
Companies usually buy their own shares in other to reduce the number of outstanding shares. A company can boost investor’s confidence by buying back it own stocks. This process allows the company to become its own investor; as a result, it reduces the number of outstanding shares. This can also improve the company’s earnings because only a few are left to claim the company’s earnings. Nestle reported that it didn’t buyback any shares this past quarter.
Nestle’s Asset declaration
Nestle’s Debt information
The company did not reveal much about its overall debt. It only shared little nformation about its short term debt obligation and this cannot be factored into how the company stands financially.
Nestle Nigeria PLC dividend declaration
Dividend unchanged, the company will stick to the 3.85 % dividend payout. Nestle cleared the dividend on March 4, 2019. Payments will be made to investors who are invested in Nestle stocks by May 10, 2019. The pa
Expressposting Nestle review
Nestle did not give enough information on how each of their brand product is performing on the market. They did not provide future guidance on what investors should expect for the next fiscal year. They did not discuss cutting cost or mention plans that will add value to the share price.
No innovations; Nestle does not have any new product on the pipeline. The stock price is still cheap, the company earned a total profit of N 12.8 billion and they are expected to earn more for the next quarter. The stock has been down about 1
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