Consumers’ Loyalty Drives Nestle Q1 Earnings by 69%

April 28, 2017
Consumers’ Loyalty Drives Nestle Q1 Earnings by 69%

Consumers’ Loyalty Drives Nestle Q1 Earnings by 69%

By Modupe Gbadeyanka

One of the big players in the food manufacturing industry in the country, Nestle Nigeria Plc, has posted strong earnings in the first quarter of 2017.

This was largely due to the trust and loyalty consumers of the firm have had in its various brands despite inflationary pressures, weak purchasing power and the challenging operating environment.

In the financial statements released on Friday, Nestle recorded a growth in its revenue by 69 percent, staying at N61.2 billion versus N36.1 billion a year ago.

Also, the pre-tax profit of the company moved to N14.3 billion from N8.7 billion, while its post-tax profit stood at N8.4 billion in the period under review against N6.7 billion in the corresponding period of 2016.

This was largely due to internal cost saving initiatives, operating efficiency and topline growth embarked on by management of Nestle Nigeria Plc.

However, the board and the management of the company remain optimistic about the long term potential of the business despite the current macroeconomic environment.

It was gathered that the company will continue to increase investments behind brand and route-to-market activities while proactively managing input cost pressures.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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