Nestlé’s First Quarter profit declines by N1.7bn May 9, 2020

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Simonson Harry

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Apr 21, 2020
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Food-processing giant,Nestlé Nigeria plc, has reported a N1.651 billion fall in after-tax profit for First Quarter 2020 compared to the relative period of 2019.

The comprehensive account of the company’s financials in the review period is detailed in its Unaudited Financial Statements for the Period Ended 31 March 2020, posted on the website of the Nigerian Stock Exchange (NSE) late Friday.

Revenue dipped by 1% from N70.967 billion at Q1 2019 to N70.329 billion in the same period this year.

Profit Before Income Tax fell to N17.455 billion from N19.121 billion, translating to a 9% decline.

Profit for the Period plunged 13%, moving from N12.846 billion to N11.195 billion.

Earnings per share (EPS)climbed down from N16.21 to N14.12, representing a 14.8% drop.

Total Equity crumbled by 10% from N62.958 billion to N56.673 billion.

Apart from a slight decline in turnover, an increase in Nestlé’s Administrative Expenses from N2.011 billion to N3.078 billion and in its Marketing and Distribution spending from N10.371 billion to N11.042 billion influenced the underwhelming performance considerably.

With outstanding shares numbering over 792.656 million, Nestlé’s dividend yield is 6.86%.

Its Price to Earnings(PE) ratio is 18.00 while its EPS is N55.54.

Reuters puts its Return on Equity at 25.69 and Return on Investment at 66.18.

Nestlé Nigeria is majority-owned by the world’s biggest food company, Nestle S.A Switzerland, which holds 66.18% (over 524.559