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Tag: Nestle Nigeria

  • Nestle Nigeria announces investment of over 1.8billion in dairy development

    Nestle Nigeria announces investment of over 1.8billion in dairy development

    …targets production of 30, 000 litres of milk daily by 2027

    Nestlé Nigeria has announced an investment of over ₦1.8 billion in dairy development, significantly improving the livelihoods of pastoralists in the Paikon Kore grazing reserve, Federal Capital Territory (FCT).

    Speaking at the launch of the Nestlé Dairy Demonstration Farm in Paikon Kore, Abuja, the Managing Director and CEO of Nestlé Nigeria Plc, Wassim Elhusseini, reiterated the company’s long-term vision of achieving a daily milk production target of 30,000 litres by November 2027. 

    He noted that this initiative would strengthen Nigeria’s dairy industry and contribute to national food security.

    The project, implemented through the Nestlé Livestock Development Project (NLDP) in collaboration with 2Scale and CBI Innovations Limited, is backed by the Federal Capital Territory Administration (FCTA).

     Elhusseini highlighted that the initiative has already led to increased milk production and improved household incomes for local dairy farmers.

    Read Also: Reports on scrapping JSS, SSS not true – FG

    He said in 2019, Nestle Nigeria partnered with the International Fertilizer Development Centre (IFDC) and CBI Innovations Limited to create the project to support the development of dairy value chain in the country and to improve the livelihoods of pastoralists within the Paikon Kore grazing reserve.

    According to him, the NLDP which is structured around three pillars: Better milk, better feed (fodder) and resilient communities has invested over N1.8 billion and currently aggregates an average of 6,000 litres of fresh milk per day from 1,600 dairy households.

    He said: “The project has transformed the dairy sector, with milk producers experiencing a nearly fourfold increase in household income, rising from ₦70,000 to ₦250,000 between 2021 and 2024. This growth is attributed to improved dairy practices, enhanced infrastructure, and better access to resources.

    “Daily milk collection increased from an initial 200 liters in June 2021 to an average of 6,000 liters per day at the Milk Collection and Cooling Centre, aggregating over 1 million liters of raw milk to date. This success benefits approximately 3,000 milk producers who are part of the 83 dairy cooperatives established under the NLDP.”

    On his part, the Minister of Livestock Development, Idi Mukhtar Maiha, noted Nestlé’s investment aligns seamlessly with the national agenda for livestock development.

    He added that the Federal Ministry of Livestock Development is fully committed to creating an enabling environment for investments like this to thrive.

    He however reiterated the government’s commitment to supporting such initiatives through policies that improve infrastructure, access to finance, and veterinary services.

    Meanwhile, CEO of CBI Innovations Limited, Mr. Soji Apampa, described the Nestlé Dairy Demonstration Farm as more than just a project as it is a catalyst for sustainable change in the industry. 

    He expressed optimism that the farm would serve as a model of excellence, promoting sustainability, animal welfare, and community well-being.

    “We envision a future where this dairy farm serves as a model of excellence and an inspiration for others in the industry. We will continue to innovate, learn, and grow, always maintaining an unwavering focus on quality, sustainability, and community.”

  • Nestlé Nigeria inaugurates 4 community water projects

    As the world commemorates World Water Day, Managing Director and CEO of Nestlé Nigeria, Mr. Mauricio Alarcon, says the company recognises and respects the fact that water is a fundamental human right.

    The News Agency of Nigeria (NAN) reports that the theme for this year’s commemoration is “Leaving no one Behind’’.

    “Everyone has the right to water, no matter where they are. Individuals and families need water for drinking, personal and household hygiene, laundry and cooking among other needs.

    “In line with Nestlé’s purpose of enhancing quality of life and contributing to a healthier future, we work alongside other stakeholders to provide access to clean safe drinking water to those who live closest to our operations.

    “As we reflect on the theme for World Water Day, we reiterate our commitment to improving livelihoods in our communities,’’ he said in his speech to observe the Day on Friday.

    NAN reports that as part of the activities to commemorate the World Water Day, Nestle said it had strong belief that water is essential, and that it had been at the forefront of actions to provide clean safe water in the communities close to its factories.

    “This is in line with its purpose to enhance quality of life and contribute to a healthier future.

    “The company works alongside government and other stakeholders to improve livelihoods in the communities where it operates by Creating Shared Value (CSV) for everyone across its value chain.

    “One of the focus areas is water — from facilities close to Agbara, Flowergate and Abaji factories, over 7,117,500 liters reach more than 6,600 people annually.

    “With the inauguration of four additional community water facilities in Areke, Bara, Owode Egba and the Alamala Military Barracks all in Ogun State today, 7,500 more people will have access to clean, safe drinking water.

    “This is significant in view of this year’s theme for World Water Day,’’ a statement by the Corporate Communications and Public Affairs Department of Nestle said.

    READ ALSO: Nestle to pay N46.4b above-profit dividend

    Nestle noted that water is an essential part of life, a basic need in every home but as important as water is to life, access to safe drinking water remained a challenge across the world, including Nigeria.

    It noted that the Multiple Indicator Cluster Survey (MICS) conducted by the government of Nigeria in 2016/2017, estimated that in the rural areas, 19 million people walk long distances to collect unsafe water from lakes, streams and rivers. It said that at the inauguration of the community water projects, Mr Ibukun Ipinmoye, Nestlé Flowergate Factory Manager, said: “Today is very significant for us as it is another step towards ensuring that everyone in our community has access to clean, safe water for their basic daily needs.

    “We are confident that these four new water facilities will go a long way towards reducing the burden of families who had to travel long distances to find water.’’

    At the handover of Nawair-Ud-Deen (NUD) Primary School project in Owode Local Government Area, the Executive Chairman of Ogun State Universal Basic Education Board (SUBEB), Alhaji Abdul-Jeleel Okewole, represented by the Deputy Director Quality Assurance, Mrs Agbatiogun Jokotade, commended Nestlé Nigeria for its continued commitment to the development of the community.

    He also encouraged the beneficiaries to take care of the new facilities to ensure that they serve them for a long time.

    The NUD school project comprises a renovated block of classrooms and head teacher’s office, a new block of toilets, a fully equipped playground and a borehole with a hand washing station.

    Nestlé Nigeria Plc began simple trading operations in Nigeria in 1961 and has grown into a leading food manufacturing and marketing company.

    Nestlé Nigeria is the biggest food company in West Africa, employing about 2,300 people and has three world-class factories.

    Nestlé Nigeria manufactures and markets a range of high quality brands, including NESTLÉ PURE LIFE, GOLDEN MORN, MILO.

    NAN

  • Nestle Nigeria mulls interim dividend on Q3 results

    The board of Nestle Nigeria Plc is considering payment of an interim dividend on the third quarter results of the food and beverages multinational.

    Directors of Nestle Nigeria are scheduled to meet later this month to consider the unaudited report and accounts for the third quarter ended September 30, 2018.

    Company Secretary, Nestle Nigeria Plc, Bode Ayeku yesterday confirmed that the board of directors would also discuss payment of interim dividend during the October 29, 2018 meeting.

    Nestle Nigeria had paid interim dividend of N11.89 billion, representing a dividend per share of N15 during the 2017 business year. The food giant had increased its total dividend payout by 325 per cent to N33.7 billion for the 2017 business year.

    Nestle Nigeria paid final dividend of N21.8 billion, representing a final dividend per share of N27.50 for the 2017 business year. This brought total dividend per share for 2017 to N42.50. It had paid N7.93 billion for the 2016 business year.

    Nestle Nigeria led the gainers yesterday at the Nigerian Stock Exchange (NSE) as investors weighed possible distribution for the nine-month period. Nestle Nigeria’s share price rose by N15.30 to close at N1,420.30 yesterday.

    Many analysts expected Nestle Nigeria to sustain its dividend payment trajectory, with profit growth translating into higher returns to shareholders. First-half results showed that the food giant sustained strong growths across key performance indicators.

    Key extracts of the six-month report for the period ended June 30, 2018 showed that Nestle Nigeria grew sales to N135.3 billion in first half 2018 as against N121.92 billion recorded in first half 2017. Gross profit increased from N48.34 billion to N55.58 billion.

    While marketing and distribution expenses increased, administrative expenses decreased and the company further optimized its bottom-line with 87.5 per cent decline in net finance costs from N2.24 billion in 2017 to N280.67 million in 2018. With these, profit before tax rose from N24.46 billion in first half 2017 to N31.87 billion in first half 2018. Profit after tax also increased from N16.55 billion in first half 2017 to N21.46 billion in first half 2018.

    Ayeku had said the company’s performance was made possible by the relentless efforts of its highly passionate team to provide high quality and affordable nutritious food and beverages to Nigerian consumers.

    “We will maintain the focus on delighting consumers with our nutritionally superior products by increasing promotion initiatives and providing more nutrition education,” Ayeku said.

    Ayeku added that in line with the company’s creating shared value principle, it remains committed to building thriving and resilient communities through local sourcing, expanding the commercialization of its products and strengthening its value chain.

    “We are pleased with the sustained growth of our company amid the tough competitive business landscape,” Ayeku said.

     

  • Nestle Nigeria optimistic of better returns

    •Shareholders get N33.7b dividend

    Nestle Nigeria Plc is optimistic the ongoing economic reforms and diversification agenda of the government will lead to better performance and returns to shareholders in the years ahead.

    Addressing shareholders at the annual general meeting yesterday in Lagos, Chairman, Nestle Nigeria Plc, Mr. David Ifezulike, said as the current economic recovery trend eases production constraints in manufacturing and agriculture and key government reforms continue to diversify the economy, an all-round improvement in the economy is expected.

    “In view of the foregoing and confident in the capacity of our people and the value of our brands, we look towards 2018 with optimism,” Ifezulike said.

    He assured shareholders of better returns in the years ahead noting that the increase of 34 per cent in the company’s sales in 2017 was evidence that consumers continue to trust its brands.

    He said the company will continue to work to retain consumer’s trust by responding to their needs and their preferences.

    According to him, Nestle Nigeria would continue to implement the policies that have contributed to the company’s growth in recent times.

    He added that Nestle brands remained the leaders in their categories by increasing the focus of the marketing efforts on driving penetration through the Popularly Positioned Products (PPP) strategy while continuing to educate consumers on the benefits of good nutrition delivered by high quality products.

    Shareholders at the meeting approved the payment of N33.7 billion as cash dividend for the 2017 business year. Shareholders commended the company’s performance noting that the company’s fundamentals remain strong.

    A breakdown of the dividend indicated that N21.8 billion will be distributed as final cash dividend to shareholders, representing a final dividend per share of N27.50. The final dividend will be paid on May 23, 2018 to shareholders on the register of the company as at the close of business on May 4, 2018. Nestle Nigeria had earlier paid interim dividend of N11.89 billion, representing a dividend per share of N15. Total dividend per share for 2017 now stands at N42.50.

    The significant increase in dividend payout underlined improvement in the performance of the company in 2017 as net profit rose by 326 per cent.

    Key extracts of the audited report and accounts of Nestle Nigeria for the year ended December 31, 2017 showed that turnover rose by 34.2 per cent from N181.9 billion in 2016 to N244.2 billion. Gross profit also grew by 33.9 per cent from N75.3 billion in 2016 to N100.9 billion in 2017. Profit before tax jumped by 117.3 per cent to N46.8 billion as against N21.5 billion recorded in the previous year. After taxes, net profit leapt from N7.9 billion in 2016 to N33.7 billion in 2017, representing an increase of 326 per cent.

     

  • Nestle Nigeria declares N33.7b dividend as profit rises by 326%

    The board of directors of Nestle Nigeria Plc at the weekend announced that the food giant have earmarked N33.7 billion for distribution to shareholders as cash dividend for the 2017 business year. The recommended dividend payout for 2017 represents 325 per cent increase on the N7.93 billion paid for the 2016 business year.

    A breakdown of the dividend recommendation indicated that N21.8 billion will be distributed as final cash dividend to shareholders, representing a final dividend per share of N27.50. The final dividend will be paid on May 23, 2018 to shareholders on the register of the company as at the close of business on May 4, 2018. Nestle Nigeria had earlier paid interim dividend of N11.89 billion, representing a dividend per share of N15. Total dividend per share for 2017 now stands at N42.50.

    The significant increase in dividend payout underlined improvement in the performance of the company in 2017 as net profit rose by 326 per cent.

    Key extracts of the audited report and accounts of Nestle Nigeria for the year ended December 31, 2017 showed that turnover rose by 34.2 per cent from N181.9 billion in 2016 to N244.2 billion. Gross profit also grew by 33.9 per cent from N75.3 billion in 2016 to N100.9 billion in 2017. Profit before tax jumped by 117.3 per cent to N46.8 billion as against N21.5 billion recorded in the previous year. After taxes, net profit leapt from N7.9 billion in 2016 to N33.7 billion in 2017, representing an increase of 326 per cent.

    The board of the company attributed the performance in 2017 to continued loyalty and trust of the customers in the company’s products, the dedication of its workforce and the efficiency of its distribution network.

     

  • NSE market indices post marginal growth

    NSE market indices post marginal growth

    Trading activities on the Nigerian Stock Exchange ( NSE ) closed for the week on Friday with a marginal growth of 0.08 per cent, following price appreciation posted by Nestle Nigeria.

    All-Share Index rose marginally by 34.43 points or 0.08 per cent to close at 42,638.83 compared with 42,604.40 achieved on Thursday.

    Also, the market capitalisation grew by N12 billion or 0.08 per cent to close at N15.301 trillion against N15.289 trillion posted on Thursday.

    A breakdown of the price movement indicated that Nestle led the gainers’ table with a gain of N55 to close at N1,400 per share.

    NASCON followed with a gain of N1 to close at N21, while Zenith International Bank garnered 35k to close at N32 per share.

    Transcorp Hotel also appreciated by 35k to close at N7.55, while Cadbury increased by 30k to close at N15.10 per share.

    Conversely, CAP led the losers’ chart, shedding N1.70 to close at N35.25 per share.

    Nigerian Breweries trailed with a loss of 40k to close at N131, while Access Bank was down by 30k to close at N12.60 per share.

    Ecobank Transnational declined by 25k to close at N 19.75, while United Bank for Africa depreciated by 20k to close at N12.15 per share.

    However, the volume of shares traded rose by 32.62 per cent, while the value traded improved by 28.34 per cent when compared with figures recorded on Thursday.

    Investors bought and sold 815.85 million shares worth N8.06 billion in 4,808 deals.

    This was against the 615.18 million shares valued at N6.28 billion traded in 5,904 deals on Thursday.

    Linkage Assurance was the most active stock, exchanging 300.77 million shares worth N246.80 million.

    Trans nationwide Express followed with an account of 199.33 million shares valued at N155.48 million, while International Breweries traded 57.38 million shares worth N3.20 billion.

    Stanbic IBTC sold 31.54 million shares valued at N1.45 billion, while Zenith International Bank traded 27.48 million shares worth N879.24 million.

    NAN

  • Dangote Cement, Nestle Nigeria drag equities to marginal decline

    Nigerian equities opened yesterday with a broad underlying positive sentiment but losses by the two foremost quoted companies-Dangote Cement and Nestle Nigeria depressed the stock market to a marginal decline.

    While there were 27 gainers to 16 losers, losses by highly capitalised stocks overwhelmed the overall market situation. Nestle Nigeria-the highest-priced stock at the Nigerian Stock Exchange (NSE), recorded the highest loss of N9.99 to close yesterday at N1,200.01. Dangote Cement-the most capitalised quoted company, followed with a loss of N9.38 to close at N215.62. Three other highly capitalised stocks-Stanbic IBTC Holdings, Zenith Bank and Lafarge Africa lost 74 kobo, 53 kobo and 50 kobo to close at N38.11, N24 and N58.50 respectively.

    The benchmark price index for the stock market-the All Share Index (ASI) declined by 0.91 per cent to close at 36,584.44 points as against its opening index of 36,920.56 points. Aggregate market value of all quoted equities on the NSE also dropped from its opening value of N12.726 trillion to close at N12.700 trillion, representing a net capital loss of N26 billion. The average year-to-date return slipped to 36.13 per cent.

    Total turnover stood at 368.38 million shares valued at N6.27 billion in 3,729 deals. AIICO Insurance was the most active stock with 131.01 million shares valued at N74.67 million. Guaranty Trust Bank followed with 61.18 million shares worth N2.48 billion while Zenith Bank ranked third with 22.74 million shares valued at N542.23 million.

    On the positive side, most stocks closed higher as bargain-hunters continued the hunt for value stocks. Beta Glass led the gainers with a gain of N2.51 to close at N59.84. Flour Mills of Nigeria trailed with a gain of N2.49 to close at N31. Nigerian Breweries followed closely with a gain of N2.48 to close at N183.50. Guaranty Trust Bank rose by N1.20 to close at N40.70 while UACN and Unilever Nigeria chalked up 50 kobo each to close at N16.50 and N46 respectively.

  • Nestle Nigeria declares N23b dividend from N24b profit

    Nestle Nigeria Plc, Nigeria’s highest-priced quoted company, has announced a total dividend of N22.99 billion for the 2015 business year as the food and beverage giant muscled operating challenges to sustain growth across key indices.

    The board of directors of Nestle Nigeria has recommended a final dividend of N15.06 billion, representing a dividend per share of N19. The company had earlier paid an interim dividend per share of N10, bringing total dividend for the year to N22.99 billion or N29 per share.

    Key extracts of the audited report and accounts of Nestle Nigeria for the year ended December 31, 2015 released yesterday at the Nigerian Stock Exchange (NSE) showed improved performance across the top-line and the bottom-line. Total turnover rose to N151.272 billion in 2015 compared with N143.329 billion in 2014. Gross profit stood at N67.346 billion, up from N61.22 billion. Marketing and distribution expenses followed the same upward trend, rising from N24.7 billion to N25.9 billion, while administrative expenses rose from N7.34 billion to N7.693 billion.

    However, finance cost fell from N5.305 billion to N4.868 billion. The drop in finance cost bolstered the bottom-line of Nestle Nigeria, which ended the year with a profit before tax of N29.322 billion, up from N24.445 billion. Profit after tax grew from N22.236 billion in 2014 to N23.736 billion in 2015.

    Market analysts commended the performance of Nestle Nigeria, noting that the company has proven to be resilient over the years.

    Analysts at FBN Capital Limited noted that Nestle Nigeria’s top-line recovery, which began in second quarter of 2015, has been sustained for three consecutive quarters.

    “We believe this is helped by continued product reformulation, an improved sales distribution network and relatively higher switching costs for the food category,” FBN Capital stated.

    Analysts pointed out that Nestle Nigeria’s low reliance on imported raw materials continues to keep gross margin at healthy levels.

    “We believe consumer goods firms will struggle given the continued macroeconomic headwinds. Although the security in the North East is a lot better today, a combination of a higher inflationary environment, slower economic growth and lower disposable income would be major themes in 2016,” FBN Capital stated.

  • Nestlé launches new social health platforms

    Nestlé has launched new online social platforms to help parents and mothers-to-be source guidance and expert advice on good nutrition for their babies.

    The online social platforms, which are now live in Ghana and Nigeria, are part of Nestlé Start Healthy Stay Healthy, a science-based education programme designed to help mothers and caregivers provide nutritionally and developmentally adequate nutrition in the first 1,000 days of a baby’s life.

    According to a statement by Loveth Umeh, Corporate Communication & Public Affairs, Nestlé, posts on what to eat during pregnancy, breastfeeding tips, as well as how and when to introduce weaning foods, are shared through messages, images and videos to help the first-time mothers in Ghana and Nigeria make the best decisions during the first 1,000 days of baby’s life.

    “The unique window from conception to the child’s second birthday is an important opportunity to ensure optimal growth and development in the short term, and to impact the future health of a child over the long term,” said Philippe Hascoet, Country Business Manager for Nestlé Nutrition in Central and West Africa.

    “The new Start Healthy Stay Healthy Facebook pages will help to engage and communicate this message to parents and first-time mothers across the region, as well as reaffirming our belief in the exclusive breastfeeding of infants in the first six months of life.”

    The new digital launches are part of Nestlé’s efforts to provide education programmes for good nutrition and feeding practices to help parents and caregivers raise healthier children.

    Similarly, in Central and West Africa, the company has continued to drive better nutrition and health for mothers and their children through the Nestlé Nutrition Institute Africa (NNIA), which is part of the Nestlé Nutrition Institute (NNI).

    Internally, there is a supportive environment provided for parents and breastfeeding mothers in the workplace. The Nestlé CWAR Parental Policy establishes minimum standards to be implemented across its sites by the end of the year, including breastfeeding rooms, maternity leave up to six months, and flexible working arrangements.

  • Nestle Nigeria declares N13.9b dividend

    Nestle Nigeria declares N13.9b dividend

    The board of directors of Nestle Nigeria Plc has recommended distribution of N13.87 billion to shareholders as final dividends for the immediate past business year ended December 31, 2014. Nestle Nigeria had earlier distributed N7.93 billion as interim dividends. This final dividend recommendation brings total dividend for the year to N21.8 billion.

    A breakdown of the dividend recommendation shows that shareholders would receive a final dividend per share of N17.50, bringing total dividend per share for the year to N27.50. The final dividend is expected to be approved by shareholders at the company’s annual general meeting on May 11, 2015 and will subsequently become payable as from May 12, 2015 to shareholders on the register of the company as at the close of business on Friday, 24 April 2015.

    The final dividend is being paid from the pioneer profits of the company and as such not subject to deduction of withholding tax.

    Key extracts of the audited report and accounts of the company for the year ended December 31, 2014 showed that turnover rose by eight per cent from N133.08 billion in 2013 to N143.3 billion in 2014. Profit before tax however dropped from N26.05 billion in 2013 to N24.4 billion in 2014. Profit after tax was almost unchanged at N22.24 billion in 2014 as against N22.26 billion in 2013.

    Directors of the food company described the performance as satisfactory citing the tough macroeconomic environment and the devaluation of Naira.

    “We are pleased with the turnover growth despite the challenging macro-economic environment. It is encouraging that we sustained almost the same level of profit after tax in 2013 notwithstanding the devaluation of the Naira which increased our net finance costs,” the company stated.

    According to the company, it will continue to increase its marketing investments, accelerate innovation and ensure that its pricing is always sensitive to consumer needs.

    Analysts a FBN Capital noted that Nestle Nigeria’s top-line performance was constrained by similar headwinds faced by other consumer goods companies such as increased competition across various product segments, insecurity in northern Nigeria and lower discretionary income.

    Analysts pointed out that devaluation of Naira and foreign exchange could further negatively impact the company’s profitability.

    “We do not expect the proposed dividend to impress the market; instead we expect the market’s reaction to the results to be negative given the weak underlying performance,” FBN Capital stated.