Nestle Grew Revenue by 0.66% in Q3-2020, Proposed an Interim Dividend of N25.00

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Nestlé Nigeria Plc (NESTLE) Q3-2020 financials shows gross earnings grew by 0.66% on the back of 0.40% and 16.05% increase in Domestic and Export sales respectively as gross revenue moved from N211.35 bn to N212.73bn in the current period. A breakdown of the sales figure shows an impressive increase in foreign sales as export increased to N4.01bn from the N3.45bn recorded in Q3-2019 despite the continuous closure of the land border.  Sales in the Nigerian economy, however, inches up from N207.90bn to N208.73bn in the current period amid weak consumer spending caused by the COVID-19 pandemic.

Nestle Grew Revenue by 0.66% in Q3-2020, Proposed an Interim Dividend of N25.00
Nestle Grew Revenue by 0.66% in Q3-2020, Proposed an Interim Dividend of N25.00 – www.brandspurng.com

Operating Profit Pressured by increasing Cost of Sales and Expenses
Following a 6.67% increase in the cost of sales, gross profit declined by 6.53% to N50.185 compared to the N57.05 recorded in the earlier period. This was further compounded by an upward movement in the Selling and distribution expenses leading to a 12.03% reduction in the operating profit from N57.05bn to N50.19 bn

Higher Finance Cost Compressed Bottom-line Performance…PAT down by 13.31%

Nestle recorded a 34.85% decrease in finance income buoyed by the continuous low asset yield. However, a 3.31% increase in finance cost led to a massive 86.09% surge in net finance cost. This led to a 12.89% and 13.31% compression in Profit before tax and Profit After Tax respectively. Profit Before Tax (PBT) decreased from N56.55bn to N49.26 bn while PAT declined from N36.84 to N31.04 in Q3-2020. Consequently, Earnings Per Share (EPS) compressed by 13.32% from N46.48 to N40.29. The company, however, proposed an interim dividend of N25.00 to be paid on 7th December 2020.

Nestle Grew Revenue by 0.66% in Q3-2020, Proposed an Interim Dividend of N25.00 - Brand Spur

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Nestle Grew Revenue by 0.66% in Q3-2020, Proposed an Interim Dividend of N25.00 - Brand SpurNestle Grew Revenue by 0.66% in Q3-2020, Proposed an Interim Dividend of N25.00 - Brand Spur

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Nestle Grew Revenue by 0.66% in Q3-2020, Proposed an Interim Dividend of N25.00 - Brand SpurNestle Grew Revenue by 0.66% in Q3-2020, Proposed an Interim Dividend of N25.00 - Brand Spur

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- Advertisement -Nestle Grew Revenue by 0.66% in Q3-2020, Proposed an Interim Dividend of N25.00 - Brand SpurNestle Grew Revenue by 0.66% in Q3-2020, Proposed an Interim Dividend of N25.00 - Brand Spur