By Modupe Gbadeyanka
The board of Nestle Nigeria Plc has proposed to its shareholders the payment of N15 interim dividend.
This was made known after the firm released its earnings for the third quarter of 2017 ended September 30.
During the period, the company recorded a significant growth in its profit after tax, posting N22.98 billion against N484.69 million declared 12 months ago.
In addition, the company posted a revenue growth of 43 percent for the 9-month period ending September 2017 supported by strong consumer and distribution-led activities as well as benefited from the pricing effect of last year.
According to the firm, this growth is an affirmation of the loyalty its customers have in the brand, despite pressure on disposable income and tough market conditions.
“Net profit for the period has increased substantially due to internal cost saving initiatives, operating efficiency and a significant reduction in the net financing costs.
“The board and management remain committed to unlocking the potential of the business supported by our strategic roadmap.
“The company will further increase investments behind brands and route-to-market activities while proactively managing input cost pressures,” a statement by Nestle Nigeria said.
During the period under review, the firm posted a profit before tax of N34.48 billion compared with N5.50 billion recorded about 12 months ago, while the gross profit rose to N75.88 billion as at September 30, 2017, from N51.93 billion as at September 30, 2016.
In a statement signed by the company’s legal adviser, Bode Ayeku, “The Directors have the pleasure to inform the shareholders and the general public of the declaration of an interim dividend of N15 per share on the issued share capital of 792,656,252 ordinary shares of 50k each composed of N13 from the balance of the pioneer profits of the company as at December 2015 and N2 from the retained earnings of the company as at December 31, 2015 per share amounting to a total interim dividend of N11,889,843,780.
“The interim dividend is payable on the issued share capital of 782,656,252 ordinary shares of 50k each held by each member of the company registered in the books as at the close business of Friday, November 24, 2017.
“The interim dividend will be paid on Monday, December 11, 2017 and it is onlu the N2 that is to be paid from the retained earnings of the company as at December 31, 2015 that will be subject to the deduction of withholding tax at the applicable rate at the time of payment.
“The register of members of the company will be closed from Monday, November 27, 2017 to Friday, December 1, 2017, both dates inclusive, for the preparation and payment of the interim dividend.”
