Nestle Nigeria Plc Wednesday announced its financial results for the first quarter (Q1) ended March 31, 2018, showing a marginal growth in performance indications. The company, which recorded a jump of 325 per cent in profit after tax (PAT) for the 2017 financial year , has started 2018 on a slow note as PAT for Q1 rose by a marginal three per cent.
Details of the results showed gross revenue of N67.5 billion in Q1 of 2018, up by 10.7 per cent from N37.7 billion in the corresponding period of 2017. Cost of sales went up by 10.7 per cent from N37.7 billion to N41.7 billion. Profit before tax fell by 4.5 per cent from N14.3 billion to N13.6 billion. A reduction of 15 per cent in tax from N5.9 billion in 2017 to N5.0 billion in 2018, made the company to end the Q1 with higher profit.
Specifically, Nestle Nigeria’s PAT stood at N8.6 billion in 2018, up from N8.4 billion in the corresponding period of 2017. Gross profit margin fell from 38.4 per cent to 38.2 per cent, while net profit margin reduced from 13.7 per cent to 12.8 per cent in 2018.
Market operators said if Nestle Nigeria would be unable to improve its performance in the remaining three quarters, it might end the year with lower bottom-line.
Nestle Nigeria Plc had reported gross revenue of N244.2 billion in 2017, up 34.2 per cent, from N181.9 billion recorded in 2016.Net finance costs fell by 46.8 per cent from N16.7 billion to N8.9 billion. Profit before tax settled at N46.8 billion, showing a growth of 117 per cent compared with N21.5 billion recorded in 2016. Profit after tax grew faster by 325 per cent from N7.9 billion to N33.7 billion in 2017.
Commenting on the 2017 results, Nestle Nigeria had attributed improved performance to multiple factors such as continued loyalty and trust of its consumers in its brands, the dedication of its people and the efficiency of its distribution network.
“In line with our strategic roadmap, we will continue to invest behind brands and route-to-market activities while proactively managing input cost pressures to stay on the growth path. We will continue delivering value to our shareholders with our commitment to provide high quality nutritious products to meet the needs and preference of our consumers,” the company said.
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