Shareholders of Nestle Nigeria Plc on Tuesday approved a final dividend payment of N30.52 billion recommended by the company for the financial year ended December 31, 2018.
The shareholders gave the approval in Lagos at the company’s 50th Annual General Meeting AGM). The final dividend payment which translated to N38.50 per share subject to withholding tax, Nestle said will be paid on May 29.
Speaking at the meeting, Patron, Nigerian Shareholders’ Solidarity Association, Mr. Timothy Adesiyan, lauded the company for ensuring steady and enhanced dividend in the past years, saying that shareholders were happy with the size of dividend being paid by the company in spite of unfriendly operating environment.
According to him, that the company’s interim dividend was timely and enabled the shareholders to address pressing needs.
He also said that the shareholders were happy with quality of awareness been created in nuritionness by the company across the country with its products, adding that the company’s marketing expansion drive was well appreciated, noting that, it was impacting on its turnover.
National Coordinator, ProgressiveShareholders Associationof Nigeria (PSAN), Mr. Boniface Okezie, urged the company to expand its operations in the South East to improve market share.
Okezie noted that the company should construct a water factory in the South East as soon as possible. He maintained that there is need for the company to decentralize its operations to save cost, noting that N43.4 billion marketing anddistribution expense during the period under review was on the high side.
The PSAN boss also called on the company to develop strategies aimed at reducing the huge unclaimed dividend figure.
Giving the company’s outlook for 2019, chairman of the company, Mr. David Ifezulike said “We will continue to leverage on research and development capabilities to delight our consumers while creating value for our business and everyone across our value chain.
According to him, despite the challenges, the company’s revenue increases by 9 per cent and profit after tax was 28 per cent higher than the achievement in 2017. “We are pleased with the results considering the high operating costs driven by the increased prices of raw materials and cost of doing business.
He maintained that with more than fifty years, Nestle Nigeria has nourished families across the country with high quality nutritious food products adapted to local tastes and preferences. “Our ability as a company to focus on delivering consistent value to our shareholders and consumers has contributed greatly to this sustained growth.
The company during the review period posted a turnover of N266.2 billion against N244.1 billion achieved in the
comparative period of 2017.The profit after tax stood at N43 billion in contrast with N33.7 billion posted in 2017.
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