Nestle Nigeria has declared a dividend of N47.96 billion for FY 2021, a 14 per cent drop from N55.49 billion in 2020
By Eugene Onyeji
Nestlé Nigeria Plc has announced its financial results for the financial year 2021, posting a profit after tax of N40.0 billion for the year, representing a marginal 2.1 per cent increase from the previous financial year.
According to the figures released recently, Nestle Nigeria reported sales in the sum of N351.8 billion, an amount that represents 22.6 per cent growth over N287.084 billion recorded in year 2020.
Despite reporting significant increase in revenue, mounting cost of sales and operating expenses are the two financial parameters that weaken Nestle Nigeria profitability in 2021 financial year.
Then of course, cost pressure has an upper hand as there was a jump of 31.2 per cent in raw materials and consumables spending. The company’s cost of sales grew by 25.7 per cent to N279.9 billion from N222.7 billion reported in 2020, taking a hefty bite at earnings.
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Nestle Nigeria’s finance income closed the period under review at N2.059 billion from N646.546 million reported in prior period as finance cost moved from N4.426 billion to N12.6 billion at the end of December 2021. The surge in finance cost was underpinned by the rise in interest expense.
A further look at the financial results showed that the company’s long-term borrowings grew to N76 billion. Nestle’s total assets are now at N310 billion, net assets declined 27.03 per cent to N21.38 billion.
Nestle Nigeria has declared a dividend of N47.96 billion for FY 2021, a 14 per cent drop from N55.49 billion in 2020. In addition to N25 per share interim dividend paid in December 2021, the Board proposed an additional dividend of N25.50 per share making for a total dividend of N50.50 for 2021.
Reacting on the results, Managing Director and Chief Executive Officer of Nestlé Nigeria Plc, Wassim Elhusseini, said: “We commend everyone in our organisation for their contributions to the attainment of these 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”.