Insider Dealing: Nestle S.A Increases Stake in Nestle Nigeria

Nestlé Nigeria, one of the largest food companies in Africa has reported that Nestle S.A, has increased its stake in its Nestle Nigeria Plc, Nigerian subsidiary, with the purchase of 636,384 additional shares on August 20, 2020.

In a statement signed by Bode Ayeku, company secretary, Nestle Nigeria Plc, Nestle S.A purchased additional 636,384 shares at an average price of N1,174.67 per share on August 20, 2020. This amounts to a total sum of N747,541,193.3

Nestle S.A. is a multinational packaged food company, that manufactures and markets a wide range of food products.

The Company’s product line includes milk, chocolate, confectionery, bottled water, coffee, creamer, food seasoning and pet foods.

Based on its last financial statement: “Apart from Nestlé S.A, Switzerland, with 524,559,457 ordinary shares (representing 66.18%) and Stanbic IBTC Nominees Limited with 7.22%, no other shareholder held 5% or more of the paid-up capital of the Company as at 30 June 2020.”

Company Financials

Nestlé Nigeria Plc recently announced in its unaudited financial results for the half-year ended June 30, 2020, recording revenue of N 141.0 billion for the period January to June 2020.

The company reported a profit after tax of N 21.8 billion during the first half of 2020 representing a 16.84% decline.

Gross Revenue declined by -0.62% to N141.02bn from N141.90bn in the previous quarter.

Mauricio Alarcon, managing director of Nestlé Nigeria said: “These results illustrate the resilience of our company.

“Amidst the on-going COVID-19 pandemic, Nestlé Nigeria has delivered consistent results in terms of revenue while exchange rate variations and an increase in the price of some key materials have affected profitability.

“While it is still early to assess the impact of this crisis, we are fully confident in our people’s agility and deep commitment to overcome challenges and continue to deliver value for our shareholders and society.

“Going forward, we will remain focused on three key priorities which include safeguarding the health and wellbeing of our people, ensuring business continuity to meet consumer needs and supporting our communities,’’

“We will achieve this by unlocking the power of food to enhance the quality of life for everyone today and for generations to come,’’.