Nestle Nigeria profit drops by 67%

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The profit for the 2016 financial year of Nestle Nigeria Plc has dropped by 67 per cent. The profit dropped to N7.924bn from N23.73bn recorded in 2015.
Its dividend declared for the period also dropped by 31 per cent to N15.06bn from N21.79bn posted in 2015, according to its report filed with the Nigerian Stock Exchange on Thursday. However, the consumer goods company recorded a growth in revenue to N181.910bn from N151.271bn. Its financial results for the nine month period ended September 30 2016, showed a 20 per cent increase in revenue of the company from N108bn to N129bn. The company, however, recorded a 29 per cent increase in cost of sales from N60bn to N77.5bn; marketing and distribution expenses rose by 11 per cent to N20bn from N18bn; and administrative expenses climbed by 25 per cent to N6.7bn from N5.4bn in 2015. Nestle’s profit before income tax dropped by 73 per cent to N5.5bn in 2015 from N20.8bn, while income tax expense rose by 40 per cent to N5bn from N3.6bn, it added.