Nestle posts N351.8bn revenue for 2021

Nestlé Nigeria Plc posted a revenue of N 351.8 billion recording 22.6% growth over the previous year. Gross profit for the year stood at N 132.4 billion, compared to N 119.2 billion during the previous year. The Company posted profit after tax of N 40.0 billion for the year.  In addition to N 25 per share interim dividend paid in December 2021, the Board proposed an additional dividend of N 25.50 per share making for a total dividend of N 50.50 for 2021. This proposed dividend will be submitted for approval at the company’s Annual General Meeting on 29th June 2022.

 Commenting on the results, Mr. Wassim Elhusseini, Managing Director and CEO of Nestlé Nigeria PLC, said, “We commend everyone in our organisation for their contributions to the attainment of this impressive results in these challenging times. It is a testament of  the consistent dedication and commitment of our employees to ensure that we continuously deliver value for our shareholders, our consumers, and the communities in which we operate. “ 

“In 2022, our focus remains on ensuring the safety and wellbeing of our employees, as well as providing affordable nutrition to enable consumers to nourish their families daily, while we work together to benefit mankind and our planet.  We will continue to push the boundaries of what is possible with foods, beverages, and nutritional solutions to enhance quality of life and contribute to a healthier future for everyone today and for generations to come.” 

The year in review witnessed a persistent increase in prices of goods and services, thereby resulting in inflationary pressures that affected both consumers and producers. Revenue growth from the Food segment, was at 21% year on year, generating a total of N208 billion. While revenue from sale of beverages raked in N144 billion, representing 24% growth Y-o-Y. The company’s revenue is also broken down into revenue from Nigeria and Exports. Nigerian sales made N347 billion during the period, while exports grew slightly to generate N5.29 billion. In addition, the company also made money from interest on investment in government securities and commercial papers. 

Nestle Nig Plc full-year revenue performance was subjugated by high costs of raw materials and consumables, which also affected profit as a trickled down effect. The company’s revenue was also impacted by border closure, rising international commodity prices, double-digit food inflation, and volatility in the FX markets. Although, marketing and distribution expenses increased by roughly 10%, during the period. A further look at the financial results showed that the company’s long-term borrowings grew to N76 billion. Nestle’s total assets are now at N310 billion, net assets declined 27.03% to N21.38 billion. Nestle Nigeria Plc has declared a dividend of N47.96 billion for FY 2021, a 14% drop from N55.49 billion in 2020. Earnings per share for the period was at N50.51 and the company is set to pay N25.50 per share as final dividend to its shareholders. The company last traded at N1,435.00 per share and has declined by 7.81% from year-to-date.