Nestle Nigeria Plc released its Q1 2013 earnings earlier in May with pre-tax profits dropping 4% to N7billion when compared to the same period last year. The outgoing Managing Director of Nestle Nigeria Martin Woolnough, 58 complained (see link below to full story) that the dwindling revenue growth for the FMGC and food industry due to hampered consumer spending is further impacted by the unrest in the Northern part of Nigeria.
“There is bit of a depressed consumer feeling at the moment, certainly driven a lot by what’s going on in the north,”.
On its impact on their marketing plans up North he says
“We can’t get teams up there,” he said. “That’s likely to impact the middle to long term brand equity in the future.”
He has since left Nestle as MD for Nigeria and has been replaced by Dharnesh Gordhon, Nestle’s former sales director in southern Africa.
On Building a New Factory
Nestle has invested 500 million Swiss francs ($524 million) over the past decade in Nigeria, building a second factory in south-western Ogun state which opened in 2011 and expanding its existing one in Agbara in the southern Delta state. The company also produces Milo chocolate malt and Golden Morn cereal.
The company has bought land south of the capital, Abuja, and has started work on a third factory to produce bottled water, Woolnough said.
Nestle share price currently trades at N1,010
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