Nestle Nigeria mulls new investments to boost growth

Nestle Nigeria Plc, said it is weighing new investment proposals to bolster its nationwide production and distribution networks to drive growth.

The company made this known at its Annual General Meeting (AGM), which held recently in Lagos. Speaking at the event, the chairman of Nestle Nigeria Plc, Mr. David Ifezulike told shareholders that the company was considering a lot of investment proposals that should strengthen its operations.

He noted that part of the proposals under consideration includes expanding the company’s operations in the South East and South-South regions of the country, adding that the company will make its intentions known through a public announcement at the appropriate time.

Ifezulike lauded the Federal Government’s economic diversification agenda, stressing that the focus on non-oil sectors such as agriculture and solid minerals would boost national growth.

He also commended government’s efforts at encouraging local sourcing of raw materials for manufacturing but urged government to ensure foreign exchange was made available for sourcing of critical raw materials, which cannot be obtained locally.

He said that the 2016 business year was a challenging one due to scarcity of foreign exchange, naira devaluation and unfriendly economic policies, among others.

The company’s sales grew 20% to N181.9bn, from N151.3bn in 2015. However, net income declined to N7.9bn, from N23.7bn in 2015 due to a combined impact of Foreign exchange scarcity and naira devaluation which led to an increase in the company’s foreign loan portfolio and weighed on its earnings.

However, he added that the current foreign exchange policy by the Central Bank of Nigeria (CBN) has enabled the company improve its fortunes and repay most of the foreign loans.

In his remarks at the event, the Managing Director, Nestle Nigeria Plc, Mr. Mauricio Alarcon, assured shareholders that the company would continue to work to impact the society positively.

According to him, every day, the company’s activities affect the lives of millions of people, from the farmers who grow its ingredients to the families who enjoy its products, to the communities where the company operates, and the rural environment upon which it depends.

“Driven by its purpose that is: enhancing quality of life and contributing to a healthier future, Nestlé Nigeria is committed to enabling healthier and happier lives for individuals and families, local sourcing, capacity building for farmers and rural development,” Alarcon said.

He assured that the company will continue to stay true to the confidence its consumers place in it to guarantee the highest quality standards in the brands they know and trust for healthy nutrition.

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