Nestlé Nigeria, the leading Nutrition, Health and Wellness Company and the industry reference for financial performance, has posted an impressive first quarter results for 2012.
The provisional and unaudited results announced by the company shows that Revenue grew by 41% to N 28.674 billion compared to N 20.383 billion in the corresponding period of 2011. Gross Profit rose by 42% from N 11, 997 billion in contrast to N 8.419 billion recorded in 2011. Profit before Income Tax leapt by 113% to N 7.349 billion as against N 3.455 billion in the same period of last year; while Profit For the Period jumped by 140% to N 6.173 billion from N 2.571 in 2011.
Commenting on the results, the Board of Directors of the company described the Revenue and Profit development in first quarter as exceptional and in line with management expectations. The good performance in the period under review was attributed to capital investment in various infrastructural upgrades at Agbara factory as well as additional sales activities in March.
Additional ‘stock build’ was required in quarter one for a smooth transition to a new ultra modern Distribution Centre under construction in Agbara. The new N 425.344 million warehouse facility is designed to manage the capacity increases following massive infrastructural upgrades at Agbara factory in the last four years for volume increase. Once completed, it is expected that the new Distribution complex will see the company growth for the next ten years.
As the company prepares for the transition to the new Distribution Centre, there was a deliberate stock build up with distributors in the first quarter to facilitate uninterrupted distribution operations.
Furthermore, the Board remarked that without the extra stock build up, the company’s natural growth has been positive and in excess of 25% year on year after adjustments.
The Board of Directors said these results should not be extrapolated for the rest of the year.
The Board assured the stakeholders of continued commitment of Nestlé management to the earnings forecast for 2012 already communicated to the Nigerian Stock Exchange.