Nestlé Nigeria records 113 percent PAT in Q1
By Laz Ibeabuchi
Nestlé Nigeria Plc said it recorded N 7.349 billion Profit before Income Tax in 1st quarter 2012, revealing an impressive 113 per cent increment as against N 3.455 billion in the same period of last year.
In a statement by its Corporate Communications and Public Affairs Manager, Dr. Samuel Adenekan, the provisional and unaudited results announced by the company shows that revenue grew by 41 per cent to N 28.674 billion compared to N 20.383 billion in the corresponding period of 2011. Gross Profit rose by 42 per cent from N 11, 997 billion in contrast to N 8.419 billion recorded in 2011. While Profit for the period jumped by 140 per cent to N 6.173 billion from N 2.571 billion in 2011.
Commenting on the results, the Board of Directors of the company described the Revenue and Profit development in first quarter as exceptional and in line with management expectations. The good performance in the period under review was attributed to capital investment in various infrastructural upgrades at Agbara factory as well as additional sales activities in March.
According to the statement, additional ‘stock build’ was required in quarter one for a smooth transition to a new ultra modern Distribution Centre under construction in Agbara. The new N5.4 billion warehouse facility is designed to manage the capacity increases following massive infrastructural upgrades at Agbara factory in the last four years for volume increase. Once completed, it is expected that the new Distribution complex will see the company growth for the next ten years.
Dr Samuel added that as the company prepares for the transition to the new Distribution Centre, there was a deliberate stock build up with distributors in the first quarter to facilitate uninterrupted distribution operations.
Furthermore, he said the Board remarked that without the extra stock build up, the company’s natural growth has been positive and in excess of 25 per cent year on year after adjustments. The Board of Directors said these results should not be extrapolated for the rest of the year.
The Board assured the stakeholders of continued commitment of Nestlé management to the earnings forecast for 2012 already communicated to the Nigerian Stock Exchange, the statement added.