The board of Nestle Nigeria Plc has proposed the payment of N21.798 billion dividend to the company’s shareholders.
This is coming at a time the firm, in its 2017 financial year, declared a profit of N33.7 billion compared with N7.9 billion achieved in 2016 with the revenue growing to N244.2 billion last year in contrast to N181.9 billion two years ago.
The dividend, according to Nestle Nigeria, represents N27.50k per share of 50 kobo each, subject to deduction of withholding tax at the applicable rate at the time of payment.
This would be presented to shareholders for approval at the 49th Annual General Meeting (AGM) scheduled for Tuesday, May 22, 2018, at the Muson Centre, Lagos.
It should be noted that interim dividend of N11.890 billion, representing N15 per share was earlier declared and paid in 2017.
If the proposed final dividend is approved by the shareholders, the total dividend will be N33.690 billion, representing N42.50k per share.
The final dividend will be paid electronically on Wednesday, May 23, 2018, to every member registered in the books of the company at the close of business on Friday, May 4, 2018, and who have completed the e-dividend registration and mandated the registrar to pay their dividends directly into their bank accounts in compliance with the directives of the Securities and Exchange Commission (SEC), the company said.
Meanwhile, the board of Nestle Nigeria has assured shareholders more value for their investment in the firm.
In a statement signed by Mr Bode Ayeku, the Legal Adviser and Secretary of Nestle Nigeria, the firm also said it would continue to implement the policies that have contributed to the company’s growth in recent times.
“We are pleased with the growth, which is as a result of multiple factors; the continued loyalty and trust of our consumers in our brands; the dedication of our people and the efficiency of our distribution network.
“In line with our strategic roadmap, we will continue to invest behind brands and route-to-market activities while proactively managing input cost pressures to stay on the growth path.
“We will continue delivering value to our shareholders with our commitment to provide high quality nutritious products to meet the needs and preferences of our consumers.
“We will continue to focus on growth through product innovation and renovation adapted to local tastes.
“We will also continue to build on the gains of our cost reduction initiatives, which have delivered improvements in our 2017 results,” the firm said in the statement.
Business Post reports that Nestle Nigeria closed on Monday at N1400 per share, but as at the time of filing this report on Tuesday, the stock was trading at N1399.90k per share, indicating 0.01 percent drop in value.
Source: Business Post