Shareholders approve Nestle’s N10.60 dividends
Shareholders of Nestle Nigeria Plc have approved N10.60 kobo per share dividend for its 2011 financial year.
Speaking at the 43rd Annual General Meeting for 2011 financial year, the shareholders expressed enthusiasm over the financial success recorded by the company.
The shareholders at the meeting approved total dividend of N7.001 billion amounting to N11.05 kobo per share, in addition to N1.50 interim dividend declared within the year, thereby bringing the total to N12.55. They also approved one for bonus issue.
Speaking at the event, Sir. Sunny Nwosu, National Coordinator, Independence Shareholders Association of Nigeria, congratulated the management for the gesture, saying its investment on projects that are capable of generating good returns for shareholders made the returns possible.
He stated that the new Golden Morn, Flowergate investment for the production of maggi and other products varieties was a key driver for the future growth of the company’s operation in Nigeria.
He pointed out that it was particularly gratifying that the company sourced 75 per cent of its raw materials locally; noting that it would continue to increase production capacity of indigenous farmers. “The 75 per cent local content is very encouraging. It is helping farmer to increase their production, knowing full well, that whatever that is produced must be purchased, which is also adding to the Country’s’ GDP,” he said.
Addressing shareholders earlier in the meeting, the Chairman, Chief Olusegun Osunkey, said the company achieved strong growth in 2011 in Nigeria with a turnover of N82.726 billion which is an increase of 21 per cent over N68.317 billion recorded the previous year.
He said the 2010 results reflect the effort of the company to deliver improved top and bottom line performance whilst investing in brands improvement, capabilities, distribution, structures and capacities to ensure long-term profitable growth and value creation.
He assured the shareholders that Nestle would continue to keep her brands consumer-relevant and competitor-differentiated.
On the company’s operation, Osunkeye said Nestle recorded another milestone in Nigeria with the inauguration of the N12 billion state-of-the-art Flowergate factory in OgunState in February 2011. He added that the new facility would further strengthen Nestle’s role as the single largest culinary manufacturing operation in Africa and Nestlé’s 27th factory in Africa.
He assured that the company would continue to evolve new products with a bid to creating shareholders value.
The company achieved 22 per cent increase in turnover to N97.96 billion from N80.11 billion in 2010, while after tax profit grew by 33 per cent from N12.60 billion to N16.81 billion during the year. Net assets was a 32 per cent improvement at N29.64 billion from N22.50 billion in 2010.