Nestle Nigeria introduces new seasoning cube as Q3 margins upsurge
by BALA AUGIE
November 9, 2017 | 12:55 am| | | Start Conversation
Nestle Nigeria Plc, a unit of the world’s biggest food company, has introduced a new seasoning cube into the Nigerian market as the consumer good giant third-quarter profit margin improved.
The new seasoning cube- MAGGI NAIJA POT, another addition to the MAGGI family, was developed using familiar and common ingredients to achieve a unique smoky blend.
In his opening remark at the launch, Maurico Alarcon MD/CEO of Nestle Nigeria said: “We dedicate ourselves to deeply understanding the needs and preferences of our customers, and then we tailor our products to suit local taste and food cultures.”
Naija Pot is a new seasoning cube in Nigeria full of fish favour with a unique combination of natural smoked fish and crayfish to give soups and pottages that bottom pot taste that Nigerians love.
Also speaking at the launch event, the Category Manager, Nestle Nigeria, Mr Nordine Meguini said, Naija Pot is a developed by Nigerian chefs, produced in Nigeria with locally known ingredients to enhance the tastes of local cuisine,”
The company sells 100 million cubes of MAGGI a day, according to Alarcon.
Analysts say Nestles’ excellent distribution and marketing strategy could help push the product across the country. This could give impetus to sales.
The Nigerian consumer goods giant beat analysts’ estimates as margins improved amid a volatile and tough macroeconomic environment.
For the first nine months through September 2017, the company’s net margin, a measure of efficiency, increased to 12.40 percent from 0.385 percent the previous year.
Profit margins were got a boost from increased sales. Revenue increased by 43.10 percent to N185.24 billion, thanks to a well diversified product base
The Nigerian consumer goods giant’s net income surged by 4643 percent to N22.98 billion in the period under review as against N484.69 million the previous year.
Nestle Nigeria, about 64 percent owned by Vevey, Switzerland-based Nestle SA, source 80 percent of its material locally, a strategy that helped the company surmount the headwinds caused by severe dollar shortage.
The company was able to reduce debt in its capital structure as its debt to equity ratio fell to 63.45 percent in September 2017 from 162.53 percent as at September 2016.
Total debt ( long and short term) declined by 41.83 percent to N29.19 billion while trade and other payables dipped by 10.51 percent to N57.86 billion as the company continues to meet obligation to suppliers.
With a cash and cash equivalent of N32.15 billion, there are no threats to future dividend payment or expansion plans.
Nestles’ shares have gained 59.83 percent since the start of the year while market capitalization stood at N1.02 trillion.
Big Read |