Nestle Nigeria’s first quarter net profit jump 126%
It should be all smiles at Nestle Nigeria Plc as the consumer goods company posted one of its best quarterly performances in years with a 126% rise in net profits to N6.7bn, from N3bn in the same period a year ago.
Nestlé’s revenue trajectory for the first quarter rose 31% to N36bn, from N28bn in the same period a year ago.
Nestle’s Board of Directors released the following statement:
“Nestlé Nigeria PLC posted a solid 31% growth in revenue notwithstanding the challenging operating environment in the first quarter of 2016. The performance is testimony to the strength of its brands and its ability to provide value for consumers who are negatively affected by macroeconomic challenges. The reduction in the cost of sales, net finance cost and internal cost saving initiatives contributed a positive evolution of net profit during the period.
“The Board and the management are committed to delivering on its set objectives despite the current turbulence and economic challenges.”
Net profit was helped by a lower net finance cost of N300m, from N2.2bn a year ago, an 86% drop.
Nestle appears to have found its bearing to higher growth as the maker of Milo, Nescafe Coffee, among others, posted an equally impressive result at year end 2015, with a 7% rise in net profit for the full year.
The company recently completed a N5.6bn bottled water plant in Abaji, Abuja, which is a testament to its belief in the Nigerian market. The Managing Director of Nestle Nigeria, Mr. Dharnesh Gordhon, said at the launch:
“It underpins our strong belief in the potential of the local market and the resilience of Nigerian economy in spite of the current difficult and volatile business environment.”
The factory will produce Nestle Pure Life water.