Shareholders approve Nestlé’s N19.00 final dividend

 Shareholders of Nestle Nigeria Plc approved final dividend of N19.00 totalling N15 billion as declared by the company for financial year ended December 31, 2015.

The multinational company had last year declared an interim dividend of N10.00 (N7.9 billion), totalling N29.00 (N21 billion). The N29.00 final dividend approved by shareholders is the highest dividend declared by a listed company in 2015.

Speaking at the company’s 47th Annual General Meeting (AGM) in Lagos today, President, Nigerian Shareholders Solidarity Association of Nigeria (NSSA), Chief Timothy Adesiyan, commended the management of Nestle Nigeria for announcing increase in revenue and profit despite the macro economy challenges.

He noted that the company’s impressive profit translates into growth in dividend payment and trajectory market capitalisation.

He, however, urged the management to float Right Issues in order to allow more shareholders take position.

According to him, “Nestle Nigeria over the years has been consistent in dividend payment and we (shareholders) are delighted about it. We applauded the management for considering shareholders’ investment first since they know what is best for shareholders.”

He however urged the management to consider new investment in order to grow in profit and increase dividend payment.

From its perspective, The National Coordinator of Independent Shareholders Association of Nigeria (ISAN), Mr Sunny Nwosu, noted that the company’s current share price does not relate on dividend declared by the company in 2015.

He stressed the need for bonus declaration since the company over the year has not done that.

The chairman of Nestle Nigeria, Mr David Ifezulike, said each year brings its own challenges, and 2015 was not different.

According to him: “In a difficult environment, Nestle Nigeria delivered solid and profitable growth at the higher end of the industry,  as it built on the previous years.

“Our company achieved operational and financial results that position it as one of the best businesses in its industry. These results have been achieved against a backdrop of political and economic challenges and volatility in Nigeria. These results are further evidence of our company’s ability to grow its business sustainably and profitability while preparing for the future.”

The company this year will be marking its 150th anniversary of its foundation.

On this, Ifezulike said “the 150th anniversary of our company is not only an opportunity to chart and celebrate its history. Above all, it also allows us to look to the future. The world around us is in a state of flux, with progress and change continuing at ever increasing speed. Over the last 150 years, the Nestle group has lived through all the world’s major political, economic and social upheavals. It is now ready to face the future with confidence”.

For the financial year ended December 31, 2015, the company had announced a growth of six per cent in revenue from N143 billion in 2014 to N151.27 billion in 2015. All segments and businesses of nestle Nigeria last year recorded strong revenue development that impacted positively on profit.

Profit for last year rose by seven per cent to N23.7 billion as against N22 billion recorded in 2014. Furthermore, the company invested N7.7 billion and in six years, it has invested N71 billion in Nigeria.

The company constructed a new factory in Abaji and increased its capacity in existing Agbara and Flowergate factories