By Modupe Gbadeyanka
Nestle Nigeria Plc released its 2016 result for the nine months ended September 30, 2016, on Friday to the Nigerian Stock Exchange (NSE).
In the released financial result, the company’s profit before tax dropped by 74 percent for the period under review despite its gross profit improving by 8 percent under nine months.
As at September 30, 2015, the gross profit of Nestle Nigeria Plc stood at N48.01 billion compared to N51.93 billion it grew to this year, while it earned N129.5 billion as revenue under the same period compared to N107.9 billion it recorded last year.
However, the company’s pre-tax profit as at September 30, 2016, stood at N5.5 billion against N20.8 billion it recorded in the corresponding year.
Business Post correspondent learnt that this was majorly caused by the harsh environment it operated.
From the analysis submitted to the NSE, its marketing and distribution expenses gulped N19.9 billion compared to N17.9 billion it was in the same period last year.
Also, N6.68 billion was used as Administrative expenses for the period under review against N5.35 billion spent in 2015.
This resulted into the total amount on operating activities of Nestle Nigeria Plc, in the period under review, totalling N25.4 billion against N24.7 billion achieved last year.
While the net finance cost as at September 30, 2016 was N19.9 billion, it was N3.9 billion in the same period in 2015.
According to the financial result, Business Post gathered that N5.01 billion was paid as income tax compared to N3.6 billion paid last year, making the company post N484 million as profit after tax compared to N17.24 billion it recorded last year.
Aduragbemi Omiyale