Nestlé Nigeria Reports N17.454bn Profit in Q1 2020

• Nestlé Nigeria Reports N17.454bn Profit in Q1 2020

Nestlé Nigeria Plc reported a turnover of N70.329 billion in the quarter ended March 31, 2020.

This was slightly below the N70.966 billion filed in the same period of 2020, according to the unaudited financial results released on the website of the Nigerian Stock Exchange (NSE).

Gross profit rose from N31.468 billion in the corresponding quarter of 2019 to N31.657 billion in Q1 2020. While distribution, sales and marketing expenses surged to N11.042 billion, up from N10.371 billion filed in Q1 2019.

Admin expenses also dragged on profit as N3.078 billion was spent during the period. Profit before tax stood at N17.454 billion, down from N19.121 billion recorded in the same quarter of 2019 while profit after tax declined from N12.846 billion in Q1 2019 to N11.195 billion in Q1 2020.

Earnings Per Share moderated to N14.21, down from N16.21.

In a statement released by the company, it said: “As the COVID-19 pandemic continues to have an impact on a global level, we have three key priorities as a Company: safeguarding the health and wellbeing of our people, ensuring business continuity to meet consumer needs and supporting communities with relief efforts. Nestlé Nigeria is working closely with the government, health authorities and other private sector players to respond to the challenge.”

“For the Company’s 31 March 2020 financial statements, the Coronavirus outbreak and the related impacts are considered non-adjusting events as the Company has a robust business continuity plan in place to ensure an uninterrupted supply of essential food and beverages. Consequently, there is no impact on the recognition and measurement of assets and liabilities.

“Due to the uncertainty of the outcome and duration of the current events, it is too early to quantify the overall impact of the outbreak on the Company’s financial position, results of operations or cash flows in the future.”