Nestle Nigeria woo investors with N21.93bn dividend as earnings surge
by BALA AUGIE
March 8, 2018 | 1:44 am| | | Start Conversation
The board of directors of Nestle Nigeria Plc has proposed a final dividend of N21.93 billion for 2017 financial year as the consumer goods giant continues to lure its owners with consistent payment.
Details of the dividend payment show each shareholder will get N27.50 for every N0.50 shares held.
Dividend has grown by 8.0 percent in the period under review from the figure paid last year while dividend yield (DY) stood at 3.08 percent.
The company has maintained an aggressive policy has payout ratio is 63.63 percent.
For the year ended December 2017, Nestle’s net income surged by 325.50 percent to N33.72 billion from N7.92 billion the previous year.
Sales were up by 34.20 percent to N224.15 billion in the period under review, thanks to price hike across the key product segment and the combination and focus and market strategies.
Nestle has embarked on some capital projects such as the construction of new factories aimed at bolstering earnings and creating jobs.
Nestlé commissioned a N4.1 billion Milo Ready-To-Drink (RTD) beverage production plant in Agbara, Ogun State.
The N4.1 billion investment by Nestle is expected to create an additional job for both direct and indirect employment, while the new RTD plant is part of the existing Agbara factory, which has been operating for 37 years.
The Vice President, Yemi Osinbajo, while speaking at the inauguration of the plant, said the new plant is a reflection of the continued confidence Nestle has in the strength of Nigeria’s economy. “We are grateful to Nestlé for these significant investments, particularly for locating its factories in rural communities and sourcing its raw materials from local farmers contributing to the sustainable development of Nigeria,” he stated.
Mauricio Alarcon, MD/CEO Nestlé Nigeria, in a statement said the new investment is in line with Nestlé’s commitments to enable healthier and happier lives. “The new Nestlé Milo RTD is complementing the existing range of offerings of our iconic Milo brand. It is conveniently packaged to offer the unique Milo taste and meet the nutrition needs of active children on the go,” he said.
“This new production plant is a true reflection of how Nestlé creates shared value for all, by providing good jobs, sourcing 80% of our inputs with local farmers and investing in the development of rural communities,” Alarcon stated
Nestle share price closed at N1,380 as of 2:00 pm on Tuesday in Lagos, valuing it at N1.09 billion.
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