Fast Moving Consumer Goods company, Nestle Nigeria Plc has announced its financial results for the nine month period ended 30th September 2016 with a 97 percent plunge in profit to N484.7 million from N17.2 billion in the same period of 2015.
The results announced at the Nigerian Stock Exchange, NSE, showed a 20 percent increase in revenue of the company from N108 billion to N129 billion.
The company however recorded a 29 percent increase in cost of sales from N60 billion to N77.5 billion, marketing and distribution expenses rose 11 percent to N20 billion from N18 billion and Administrative expenses climbed 25 percent to N6.7 billion from N5.4 billion.
The company recorded a 459 percent increase in finance income that stood at N2.2 billion from N378.7 million, but finance costs also rose by 418 percent to N22 billion from N4.2 billion.
Consequently, Nestle’s profit before income tax dropped 73 percent to N5.5 billion from N20.8 billion, while income tax expense rose 40 percent to N5.0 billion from N3.6 billion recorded in the same period of 2015.
The statement on the result signed by company secretary and legal adviser Bode Ayeku, attributed the dwindling profit to the naira devaluation and increase in income tax.