For increasing shareholders value on investment through robust dividend payout and adherence to corporate governance principles, shareholders’ of Nestle Plc, yesterday commended the company’s board on its 2017 performance, as they approve final dividend of N21.8 billion, which represents N27.50 per share for the year ended December 31, 2017.
The company had earlier declared an interim dividend of N11.890 billion, representing N15 per share, bringing the total dividend for 2017 will be N33.69 billion, representing N42.50 per share.The shareholders who spoke at the 49th yearly general meeting held in Lagos yesterday in Lagos, commended the management for the impressive performance and efficient running of the company, amid harsh economic environment
Specifically, the immediate past president of shareholders Solidarity Association, Timothy Adesiyan expressed satisfaction with the state of affairs in the company especially for abiding by strict corporate governance principles and sustaining its profitability.He however urged the board to do everything within its powers to give bonus to shareholders in the next financial year.
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Reviewing its performance, the chairman of Nestle Nigeria, Mr. David Ifezulike said that Nestle Nigeria would continue to implement the policies that have contributed to the company’s growth in recent times.
He stated that the company had delivered very solid results across board, recovering from the impact of the recession in 2016, stating that the revenue increased by 34 per cent and profit after tax increase was 326 per cent, a remarkable result considering the high operating costs driven by the increased prices of most raw materials and inputs.
According to him, Nestle brands maintained its leadership position in the industry by increasing focus on marketing and driving penetration through the firm’s Popularly Positioned Products (PPP) strategy as well as continued consumer education.He said: ”The increase by 34 per cent of our sales in 2017 is evidence that consumers continue to trust our brands, a trust that we will continue to protect as we continue to protect as we strive to respond to their needs and their preferences.”
On the company outlook, he said: “in view of the foregoing and confident in the capacity of our people and the value of our brands, we look towards 2018 with optimism.“We also remain well aware of the potential challenges in a year preceding major elections as well as risks associated with the current agitation in the Niger-Delta, the herdsmen crisis and Boko-Haram activities.”He added that as the current recovery trend eases production constraints in manufacturing and agriculture and key government reforms continue to diversify the economy, an all-round improvement in the economy is expected.
Source: G Business
