Nestle Nigeria Plc 2016 Financial Year End Result summary

12 Months Report NESTLE NIGERIA PLC
	2016 N'000	2015 N'000	change	Year End
Revenue	181,910,977	151,271,526	20%	December
Profit before taxation	21,548,408	29,322,477	-27%
Profit for the period	7,924,968	23,736,777	-67%
Issued Shares (Units)	792,656,252	792,656,252
Basic Earnings Per Shares (Kobo)	10.00	29.95	-67%
Last total dividend paid (Kobo)	10.00	27.50	-64%

Nestle Nigeria had a torrid 2016 and this resulted in a performance that would have denied it not paying dividend for the first time in a very long time but alas, it made #7.4 billion in Q4 to be able to pay the #10 dividend.

A quick look at the Quarter on quarter performance by the Company:

Revenue

Q1: 36,130,866,000

Q2: 44,311,831,000

Q3: 49,039,594,000

Q4: 52,428,686,000

The company grew its revenue quarter on quarter against the current economic headwind.

PAT

Q1: 6,681,389,000

Q2: (6,145,580,000)

Q3: (51,115,000)

Q4: 7,440,274,000

The Company started well with #6.6billion but the dismal performance in Q2 and Q3 disrupted the outstanding performance over the years until the Q4 result that salvage something for the stakeholders.

With a declaration of #10 dividend the company successfully maintain its dividend payment history however this is short of  what to expect for such company.

Two major factors responsible for the above performance are the finance cost and income tax expense. Net finance cost increased by 276.63% while the income tax expense increased by 143.90% and in naira value that is a whopping #20.277,903,000.

The Company stock still remains the toast of  Institutional Investors due to their rich basket of products that are majorly leaders in their respective markets.

The company is working so hard to improve its performance going forward and that has informed the local sourcing of raw materials like soya bean, maize, cocoa, palm olein and sorghum. This is expected to secure supply and save forex for the company.

The Market will way its options, because this is a stock that started the year at #810 and currently trades @ #570 that is a decline of (29.62%).

Nestle may not see red, as the company is working to actually turn the finance cost around and at the same time tax may not be  increased like it did last period.