Economy

Analysis: Nestle May Pay N35.71 Dividend for FY 2018

Published

8 years ago

25/11/2018

By Dipo Olowookere

Nestle Nigeria Plc is likely to pay its shareholders a final dividend of N35.71k per share for the 2018 financial year, analysts at FSDH Research have said.

If this happens, the total dividend per share of the leading food and beverage company will be paying for the FY 2018 will be N55.71k, having earlier paid an interim dividend of N20 per share to shareholders.

In an analysis of Nestle Nigeria’s third quarter results, FSDH noted that the firm has managed its cost of sales better in Q3 2018 than in the corresponding period of last year, while also benefiting from investments in expansion in the route to market and market leadership.

FSDH, which pegged fair value of the company’s shares at N1,147.41, disclosed that as at December 2017, 80 percent of the agricultural inputs of Nestle were sourced from local farmers due to investments made in 2011.

It added that Nestlé Nigeria plans to achieve its growth objective through continuous innovation to meet consumer needs and preferences as well as investment in new facilities.

The company’s product innovation is based on the understanding of the nutritional needs, local tastes and habits of its customers. Nestle also focuses on food fortification to help micronutrient deficiency challenges. This is reinforced by its PPP strategy, which focuses on the specific needs of lower-income consumers.

PPP offers these consumers high-quality food products that provide nutritional value at an affordable cost.

Nestle produces several products including different brands of its flagship seasonings called Maggi, Milo, Golden Morn Maize, Nestle Pure Life, Nescafe, SMA, NAN Nutrend, Lactogen and Cerelac.

As a market leader in its sector, Nestle Nigeria has managed to remain profitable by diversifying its product portfolios which are essential for everyday living.

Its backward integration strategy to secure raw materials locally by partnering with farmers has yielded results as well as its increased penetration due to the Popularly Positioned Products (PPP) strategy and the introduction of innovative products as well as improved operational efficiency.

In its analysis, FSDH said Nestle will continue to churn out good results based on the firm’s strong revenue growth prospect with strong profit margins, market leadership and large market size in Nigeria, focus on investment in innovative products, improved operational efficiency, backward integration to lower imported inputs, technical partnership with the parent and related companies, and customers’ brand loyalty.

However, it emphasised that the growth might be affected by the current weak consumers’ spending power, difficult operating environment, and possible currency depreciation.

“Looking at the medium to long-term outlook of the company and the impact of the aforementioned factors, we are of the opinion that the impact of the positive factors would be higher on both the revenue and the profitability of the company than the negative factors.

“We therefore estimate a Turnover of N298.45bn, N364.79bn, N440.43bn, N525.15bn and N620.91bn for the periods ending December 2018, 2019, 2020, 2021 and 2022.

“We estimate EBIT of N64.41bn, N75.66bn, N91.75bn, N109.54bn and N129.05bn, respectively and EBITDA of N72.42bn, N84.87bn, N102.47bn, N122.18bn and N144.15bn for the same period using EBIT margins of 21.58%, 20.74%, 20.83%, 20.86% and 20.78% respectively.

“Our PBT forecasts for the periods are: N68.13bn, N75.66bn, N90.12bn, N106.14bn and N123.73bn.

“Adjusting for tax, our PAT forecasts are N49.06bn, N54.49bn, N64.90bn, N76.44bn and N89.10bn. PAT Margin for the period are 16.44%, 14.94%, 14.74%, 14.56% and 14.35%. Our forecast final dividend for the FY 2018 is N35.71 per share,” FSDH said in the report obtained by Business Post.

View the full report here

Economy

Four Securities Erase N51.17bn from NASD Exchange

Published

1 day ago

27/06/2026

Adedapo Adesanya

By Adedapo Adesanya

Four securities weakened the NASD Over-the-Counter (OTC) Securities Exchange by 1.95 per cent on Friday, erasing N41.17 billion from the bourse, which had its market capitalisation at N2.567 trillion compared with the previous session’s N2.618 trillion.

In the same vein, the NASD Unlisted Security Index (NSI) decreased at the close of business by 85.28 points to 4,277.07 points from 4,362.32 points.

The price decliners were led by 11 Plc, which gave up N20.50 to sell at N200.50 per share compared with the preceding day’s N221.00 per share, FrieslandCampina Wamco Nigeria Plc dropped N16.94 to close at N155.20 per unit versus Thursday’s closing price of N172.14 per unit, Central Securities Clearing System (CSCS) Plc went down by N2.11 to N84.68 per share from N86.79 per share, and Afriland Properties Plc lost 11 Kobo to end at N16.74 per unit, in contrast to the N16.85 per unit it closed a day earlier.

During the trading day, the value of transactions jumped by 172.1 per cent to N29.9 million from the preceding session’s N10.9 million, and the volume of trades soared by 136.5 per cent to 955,096 units from the previous 403,901 units, while the number of deals went down by 11.4 per cent to 31 deals from 35 deals.

Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 68.6 million units sold for N4.7 billion.

GNI Plc also ended the session as the most traded stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, trailed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.

Economy

Cautious Trading, Profit-taking Weaken Nigeria’s Stock Exchange by 0.66%

Published

1 day ago

27/06/2026

Dipo Olowookere

By Dipo Olowookere

The last trading session of this week on the floor of the Nigerian Exchange (NGX) Limited ended on a negative note, with a 0.66 per cent loss on Friday.

This was influenced by sustained selling pressure and cautious trading, which forced investors into profit-taking.

Data obtained by Business Post showed that the energy sector fell by 4.66 per cent, the insurance counter dipped by 2.23 per cent, the consumer goods index depreciated by 0.96 per cent, and the banking segment shed 0.28 per cent, while the industrial goods space remained unchanged.

At the close of business, the All-Share Index (ASI) of Nigeria’s stock exchange went down by 1,531.81 points to 232,049.02 points from 233,580.83 points, and the market capitalisation dropped N983 billion to settle at N148.905 trillion compared with Thursday’s N149.888 trillion.

Aradel was the worst-performing equity after it lost 10.00 per cent to close at N1,417.50. International Energy Insurance slipped by 9.95 per cent to N5.79, Trans-Nationwide Express depreciated by 9.89 per cent to N3.28, eTranzact crashed by 9.79 per cent to N14.75, and UPDC slumped by 9.72 per cent to N28.12.

The best-performing equity for the day was Universal Insurance, which gained 6.32 per cent to close at N1.01, McNichols grew by 5.52 per cent to N8.60, Linkage Assurance expanded by 4.67 per cent to N1.57, NGX Group appreciated by 4.35 per cent to N120.00, and Transcorp increased by 3.62 per cent to N41.50.

As look at the activity level indicated that investors traded 388.7 million stocks worth N18.4 billion in 44,631 deals compared with the 393.7 million stocks valued at N19.2 billion executed in 45,813 deals a day earlier, representing a decline in the trading volume, value, and number of deals by 1.27 per cent, 4.17 per cent, and 2.58 per cent, respectively.

Economy

Official FX Market Sees Naira Dip to N1,380.93/$1

Published

1 day ago

27/06/2026

Adedapo Adesanya

By Adedapo Adesanya

The Naira recorded a loss of 82 Kobo or 0.06 per cent against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, June 26, exchanging at N1,380.93/$1, in contrast to the previous day’s rate of N1,380.11/$1.

Equally, the domestic currency further weakened against the Pound Sterling in the official FX market yesterday by N6.06 to settle at N1,824.90/£1 versus the preceding session’s N1,818.84/£1, and lost N10.74 on the Euro to sell at N1,577 .58/€1 versus N1,566.84/€1.

At the GTBank forex counter, the Naira depreciated against the greenback during the session by N4 to close at N1,387/$1, in contrast to Thursday’s value of N1,383/$1, and at the parallel market, it was unchanged at N1,395/$1.

Interbank FX activity among financial institutions has fluctuated amid a sharp slowdown in forex market interventions by the Central Bank of Nigeria (CBN), as it allows demand and supply to move the market.

Also, a stronger greenback has generally put significant pressure on emerging-market currencies.

Nigeria has accessed the first tranche of a proposed $5 billion derivatives financing arrangement with First Abu Dhabi Bank PJSC, the largest lender in the United Arab Emirates (UAE).

The $5 billion facility, approved by the National Assembly earlier this year, is part of the federal government’s plan to diversify external financing sources and reduce borrowing costs. Structured as a Total Return Swap with First Abu Dhabi Bank, proceeds are earmarked for refinancing debt and supporting infrastructure financing.

If the proceeds are brought into the country through the official FX market, the transaction will increase the currency reserves or Dollar liquidity.

At the cryptocurrency market, Solana (SOL) grew by 2.2 per cent to $71.92, Cardano (ADA) gained 1.1 per cent to trade at $0.1474, Ripple (XRP) also appreciated by 1.1 per cent to $1.05, Dogecoin (DOGE) expanded by 0.9 per cent to $0.0755, and Ethereum (ETH) improved by 0.4 per cent to $1,578.84.

On the flip side, TRON (TRX) slid 0.6 per cent to $0.3203, Binance Coin (BNB) slumped by 0.3 per cent to $564.33, and Bitcoin fell by 0.2 per cent to $60,219.37, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.