Nestle Nigeria sees modest growth in nine months

Nestle brands

Nestle Nigeria Plc reported modest gains in sales and profit for the nine months to the end of September.

The food and beverage giant posted an 11% increase in net profit for the period, helped by a 4% sales growth. Revenue climbed to N211.3bn from N203bn in the previous year. Sales in the third quarter grew marginally by 2% resulting in a quarterly net profit decline of 9%.

The company benefitted from a sharp drop in net finance cost, which fell to N496m from N1.3bn, a 61% decline.

The beverage segment which accounted for 38% of the company’s total sales grew by 7.4% to N79.5bn with pre-tax profit of N19.7bn, a 46% increase. Beverage products include Milo, Chocomilo, Nido, Nescafe and Nestle Pure Life.

The food segment saw a tepid rise in revenue to N131.8bn, a 2.12% gain and a 4% rise in pre-tax profit to N37.4bn. Food products include Maggi, Cerelac, Nutrend, Nan, Lactogen and Golden Morn.

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