Nestle: Shareholders optimistic about 300k interim dividend
Going by dividend paying record of Nestle Nigeria Plc, projections have shown that shareholders of the company may be looking up to interim dividend of about 300 kobo, as the company’s board meets to endorse Q3 2017 unaudited result.
The above amount was arrived at by our in-house analysts taking into consideration the company’s healthy dividend history and probability of rewarding shareholders with a quarter of what may be approved by shareholders for the 2017 financial year, as interim dividend.
The Company’s Secretary and Legal Adviser, B.B Ayeku in a signed statement, said that Nestle Nigeria’s board of directors has scheduled to meet on October 27, 2017, in the afternoon, to consider the unaudited financial statement of the period ended 30 September 2017.
She added that, “The consideration of interim dividend is one of the issues to be discussed at the meeting.”
Daily Times Nigeria recalls that Nestle Nigeria has sustained dividend payment tradition and rewarding shareholders with interim dividend in order to keep shareholder liquid before the final dividend is paid in the coming year.
Nestle Nigeria, for the 2016 financial year, paid 1000 Kobo dividend, following approval by shareholders at the company’s Annual General Meeting (AGM) held on 23rd May, 2017.
The company, in 2016, also paid 1900 kobo dividend, following approval secured from shareholders at the company’s AGM on 24th May, 2016.
In 2015, shareholders of the company were rewarded with interim dividend of 1000 kobo, paid on 7TH December.
In 2014, shareholders of Nestle Nigeria were rewarded with interim and final, the interim of N10.00 was paid on December 8, 2014, having earlier on 31 May, 2014 paid N24.00 reward to shareholders.
Expectations of dividend interim dividend by shareholders, following release of expected Q3 2017 result is traceable to the remarkable performance in H1 and projected earnings in 2017 financial year, which may surpass its 2017 guidance.
Nestle Nigeria posted revenue of N121.9 billion, and Profit after Tax (PAT) of N16.5bn in its half year operations. The company’s unaudited half-year result showed 52 per cent rise in revenue from N80.4bn in 2016 to N121.9bn in 2017.
According to its H1 2017 result, gross profit recorded in Q2 2017 stood at N48bn, compared with N32bn in 2016; while operating activities improved from N14bn in 2016 to N26bn.
Similarly, profit rose to N16.5bn, higher than N535.8m achieved in the corresponding period in 2016.The firm attributed the improved performance to the loyalty and trust of its consumers in the brands, as well as the firm’s strategic distribution network.
The Managing Director of the company, Mauricio Alarcon said: “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.”
He said, “The board and the management remain confident that our strategic roadmap will continue to leverage on the potential of the business; and the company would further increase investments behind brand and route-to-market activities, while proactively managing input- cost pressures.”
Stories by Bonny Amadi
