Nestlé boosts investor confidence with N16bn profit in H1 2017
Nestle Nigeria Plc has once again demonstrated commitment to enhance positive market perception and increased investor confidence with remarkable performance in its 2017 first half year result.
The result for the period ended 30th June, 2017, released by the Nigerian Stock Exchange (NSE) showed notable growth in key market performance indices and profit and loss lines, and prospect to better performance in subsequent quarters.
Nestlé Nigeria Plc for the first half 2017 showed that profit after tax (PAT) peaked at N16.5 billion and a turnover growth of 52 per cent.
The company posted a revenue of N121.9b in H1 2017, up from N80b in the corresponding period of 2016.
Gross profit stood at N48b, compared with N32b in 2016, while results from operating activities improved peaked at N2b in 2017 first half year, from N14b recorded in the preceding period of 2016.
Mauricio Alarcon, MD/CEO of Nestlé Nigeria in his reaction, following release of the company’s HI result, said that the board is comfortable with the result which endorses the confidence and loyalty of its customers.
“We are particularly pleased with the growth which is an affirmation of the loyalty and trust of our consumers in our brands. The result is also due to the hard work of our people, and our distribution network” said Mauricio Alarcon.
The Board and the management, the CEO said “remain confident that our strategic roadmap will continue to leverage on the potential of the business and the Company will further increase investments behind brand and route-to-market activities while proactively managing input cost pressures”
The result further showed that Nestle continues to reduce its finance cost which declined in H1 2017 to N7, 385,423b, from N14, 891,205b recorded in the prior period of 2016.
According to the result, profit before income tax also soared to N24, 459,525b, from N896 459m recorded in H1 2016.
During the period, Nestle expended more in tax, a s its Income tax expense soared to N7, 911,539b, from N360, 640m in the H1 2016.
Bonny Amadi
