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Nestle Nigeria Shareholders Approve N35.50 Kobo Dividend

•Research Signal

Shareholders of Nestle Nigeria Plc, has approved a final dividend of N35.50 kobo per share that was recommended by the board of directors for the financial year ended December 31, 2020. The bank accounts of Shareholders that are qualified will be credited tomorrow June 23, 2021.

This was part of the resolution on Tuesday June, 22, 2021 at the company 52, Annual General Meeting (AGM) in Lagos. The dividend is subject to deduction of withholding tax, making the total dividend paid for the 2020 financial year to N60.50K.

The approved final dividend of N35.50K per share is coming after the company earlier declared an interim dividend of N25.00 from the profit of 2019 on the issued share capital of 792,656,252 ordinary shares of 50k each.

The proposed final dividend of N35.50K is composed of N24.50K from the after tax profit for the year ended 31 December 2020, and N5.00 and N6.00 from the after tax retained earnings of the years ended 31 December 2019 and 2018, respectively.

Commenting on the company performance, Chairman of the board David Ifezulike noted that Covid-19 impacted on its performance, while the company also encountered challenges with the availability of key raw and packaging materials including sugar.

According to him “the prices of some materials increased exponentially, while access to foreign exchange for the importation of key items became more restricted during the period under consideration”.

Stressing that “Heightened insecurity compelled some of our distributors to shut down. The closure or partial closure of key markets and the lack of patronage at the make-shift markets opened by some state governments also put pressure on the business during the period”.

He pointed out that “The good news is that thanks to the resilience of our team, we managed to keep our factories open and operational despite the challenges. We also kept our people safe and motivated by working together to put in place and adhere to the recommended COVID-19 preventive measures”.