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 on Tuesday.
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.
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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.
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).