Nestle Nigeria: 48.6% growth in Trade, other payables weaken revenue, profits
By Kayode Tokede
Nestle Nigeria reported 48.6 per cent growth in its trade and other payables in 2020 financial year for period ended December 31, 2020 that weaken revenue and profits.
The company reported N116.5billion Trade& other payables in 2020 as against N78.4billion in 2019 to slow down its revenue.
In the year under review, Nestle Nigeria reported one per cent increase in revenue to N287.08billion in 2020 as against N284.04billion reported in 2019.
Also from the profit & loss figures, it reported 14 per cent decline in profit to N39.2billion in its audited results for full year ended December 31, 2020 as against N45.68billion reported in full year ended December 31, 2019.
The multinational company also reported 15 per cent decline in profit before tax to N60.6billion in 2020 compared with N71.12billion reported in 2019.
The management of Nestle Nigeria propose a final dividend of N35.50, (N24.50k from the profit after tax for the year ended December 31, 2020, N5.00 and N6.00 from the after tax retained earnings for the year ended December 31, 2019 and December 31, 2018 respectively (2019:N45.00) per share on the issued share capital of 792,656,252 (2019:792,656,252) ordinary shares of 50k each, subject to approval by the shareholders at the Annual General Meeting.
This brings Nestle Nigeria declared dividend to N55.49billion in 2020, 10 per cent above N50.33 billion in 2019.
Other key driver to decline in profits was finance cost grew by 95.3 per cent to N4.43billion in 2020 as against N2.27billion reported in 2019.
Nestle Nigeria in financial results for the half year ended June 30, 2020, reported a profit after tax of N21.8 billion as against N billion reported in half year ended June 30, 2019.
While reacting over half year ended June 30, 2020 unaudited results, Managing Director, Nestlé Nigeria, Mauricio Alarcon said “These results illustrate the resilience of our company.
“Amidst the on-going COVID-19 pandemic, Nestlé Nigeria has delivered consistent results in terms of revenue while exchange rate variations and increase in the price of some key materials have affected profitability.
“While it is still early to assess the impact of this crisis, we are fully confident in our people’s agility and deep commitment to overcome challenges and continue to deliver value for our shareholders and for society.
“Going forward, we will remain focused on three key priorities which include safeguarding the health and wellbeing of our people, ensuring business continuity to meet consumer needs and supporting our communities,’’ he said.
Alarcon said that Nestle Nigeria recognizes its responsibility to bring affordable, safe and high-quality nutrition to everyone.
He said it would continue to work tirelessly to meet the needs of the millions of Nigerians who rely on it to feed their families every day.
From the balance sheet position, Nestle Nigeria reported 27.3 per cent growth in total assets to N246.18billion in 2020 as against N193.37billion reported in 2019.
On the flip side, shareholders funds dropped by 35.7per cent to N29.3billion in 2020 from N45.55billion reported in 2019.
