Nestlé Nigeria Plc says it has posted a net profit of N12.8 billion in the first quarter of 2019 compared to N 8.6 billion during same period of the previous year.
In its result announced on Thursday, the company said it generated a revenue of N 71.0 billion recording growth of 5.2 per cent over the previous year.
“The company’s Gross profit for the period stood at N 31.5 billion, compared to N25.8 billion during the previous year,’’ it said in a statement.
Q1 2019 Results:
| January March 2019 | January March 2018 | |
| N’000 | N’000 | |
| Revenue | 70,966,754 | 67,463,648 |
| Cost of Sales | -39,497,884 | -41,705,831 |
| Gross Profit | 31,468,870 | 25,757,817 |
| Marketing and Distribution expenses | -10,371,484 | -9,029,860 |
| Administrative expenses | -2,010,834 | -2,209,312 |
| Results from operating activities | 19,086,552 | 14,518,645 |
| Finance income | 504,003 | 281,299 |
| Finance costs | -469,354 | -1,159,888 |
| Net finance costs | 34,648 | -878,590 |
| Profit before income tax | 19,121,201 | 13,640,055 |
| Income tax expense | -6,274,881 | -5,034,174 |
| Profit for the period | 12,846,320 | 8,605,881 |
“In the first quarter of the 2019, Nestlé Nigeria continued its emphasis on creating demand as well as strengthening brand loyalty programmes to increase market penetration.
The company also continued to focus on Creating Shared Value for society and its shareholders by delivering high quality nutritious products to consumers and contributing to the growth of the local economy through local sourcing and increasing access to clean drinking water in the communities where it operates,’’ it said.
Commenting on the results, Mr Mauricio Alarcon, Managing Director & CEO of Nestlé Nigeria Plc said, “We are pleased with the sustained growth of our company, the loyalty of our consumers and the discipline and dedication of our people to provide tastier and healthier foods and beverages.’’
He said that looking forward to the rest of 2019: “We are optimistic that our current business model will keep delivering satisfactory results to our shareholders and to society in line with our Creating Shared Value principle.
“Providing high-quality and affordable nutritious products which meet the needs and preferences of our consumers will remain our priority as we help build thriving, resilient communities through sustainable local sourcing and continuous product innovation.’’
Nestle Nigeria began simple trading operations in Nigeria in 1961 and has grown into a leading food manufacturing and marketing company.
Nestle Nigeria is the biggest food and beverage company in West Africa and employs more than 2,100 people and also has thre world-class factories.
The company manufactures and marklets a range of high quality brands, including NESTLE PURE LIFE, GOLDEN MORN, MILO, KITKAT, MAGGI, NESCAFE and CERELAC.
(NAN)
