Nestle posts 23% drop in H1 pre-tax profit

Nestle Nigeria Plc has posted 23.86 per cent decrease in profit before tax for the first half ended June 30, 2015. According to a notice from the Nigerian Stock Exchange (NSE), the company recorded a profit before tax of N10.606 billion compared with N13.931 billion a year earlier, indicating a drop of 23.86 per cent.

Its profit after tax equally went down by 24.9 per cent from N11.835 billion in 2014 to N8.887 billion during the year under review. Revenue also dropped marginally to N65.924 billion, from N67.200 billion in the same period last year, representing a decrease of 1.89 per cent.

Nestle posted 50.6 per cent decrease in profit before tax for the first quarter ended March 31, 2015. The company’s financial statement showed profit before tax of N3.487 billion compared with N7.071 billion a year earlier, indicating a drop of 50.6 per cent.

Revenue also dropped to N27.556 billion, from N33.425 billion in the same period last year, representing a decrease of 17.5 per cent. Nestle Nigeria had also posted six per cent decrease in profit before tax during the full year ended December 31, 2014.

The company posted a profit before tax of N24.44 billion compared with N26.04 billion a year earlier, indicating a drop of six per cent. Revenue, however, rose to N143.32 billion, from N133.06 billion in the same period last year, representing an increase of eight per cent.

Addressing shareholders at the company’s 46th Annual General Meeting (AGM), the chairman of the company, Mr. David Ifezulike, said the financial results in 2014 were proof of many good things that are happening in the company but also highlighting areas of improvement.

“This is our commitment in 2015. Our company has delivered on its short-term commitment while continuing to strengthen the foundations of our future growth.

Our success has always been based upon our determination to stay the course and look ahead, to understand the environment in which we operate, to organise ourselves to seize opportunities to deliver profitable growth, now and in the future,” Ifezulike said.