Nestle Nigeria Plc released its 2016 result for the nine months ended September 30, 2016, with profit before tax dropped by 74 percent for the period under review despite its gross profit improving by 8 percent under nine months.
The gross profit of Nestle Nigeria Plc stood at N48.01 billion compared to N51.93 billion it grew to this year, while it earned N129.5 billion as revenue under the same period compared to N107.9 billion it recorded last year.
However, the company pre-tax profit as at September 30, 2016, stood at N5.5 billion against N20.8 billion it recorded in the corresponding year.
From the analysis submitted to the NSE, its marketing and distribution expenses gulped N19.9 billion compared to N17.9 billion it was in the same period last year. Also, N6.68 billion was used as Administrative expenses for the period under review against N5.35 billion spent in 2015.
This resulted into the total amount on operating activities of Nestle Nigeria Plc, in the period under review, totaling N25.4 billion against N24.7 billion achieved last year. While the net finance cost as at September 30, 2016 was N19.9 billion, it was N3.9 billion in the same period in 2015.
According to the financial result N5.01 billion was paid as income tax compared to N3.6 billion paid last year, making the company post N484 million as profit after tax compared to N17.24 billion it recorded last year.
Meanwhile the Board of Director has appointed Mr Maurico Alarcon as the new Managing Director of Nestle Nigeria Plc with effect from 1 October 2016. Mr Maurico Alarcon joined Nestle Mexico in 1999.
Following a number of Sales and Marketing assignments in the Ice Cream business in Mexico, inclusing Marketing Advisor at the Ice Cream Strategic Business Unit in Switzerland, he was appointed as the Marketing Manager for the Ice Cream business in Australia.
In 2010, he joined Nestle Egypt as Business Executive Manager, Ice Cream, where his dynamism played a key role in transforming the business. Under his leadership, the Ice Cream business turnover in Nestle Egypt more than doubled and the profitability improved in a challenging environment.
Mr. Maurico Alarcon drove a strong turnaround of the business in Nestle Cote d Ivoire from 2014 through his engaging leadership style by driving strong top line growth. In his recently expanded role as the Managing Director of Nestle Atlantic Cluster (covering Cote d Ivoire, Senegal, Guinea, Gambia, Mauritania and Cape Vert,) he has effectively led the new Cluster.