Nestle Nigeria PLC’s shareholders have approved a final dividend of N30.517 billion, which translates to N38.5 per share for the 2018 financial year. The approval was given during the company’s 50th Annual General Meeting which recently held in Lagos.
Shareholders are Excited: The dividend payout excited some of the shareholders, many of whom commended Nestle‘s consistency in this regard.
Reacting to the development, the National Coordinator of the Progressive Shareholders Association of Nigeria, Mr Boniface Okezie, stated that the payout was rather on the high side. He also advised that Nestle Nigeria Plc should devise measures aimed at reducing the huge unclaimed dividend figure.
Shareholders’ Advice: Speaking further, Okezie called on the company to consider decentralising its processes for the sake of cost-effectiveness. He made this remark specifically in light of the N43.4 billion marketing and distribution expense the firm recorded in the 2018 financial year which, according to him, was rather on the high side.
Meanwhile, other shareholders used the occasion to urge the company’s board and management to consider issuing bonus shares to the investors, henceforth.
The Chairman’s Speech: Nestle‘s Chairman, David Ifezulike, while reviewing the company’s performance in FY 2018, stressed that it was beset by economic challenges. He stressed that “on the average, spending power further decreased due to the elevated inflationary pressures as we witnessed more value-driven consumption decisions.”
He also acknowldged the challenges posed by competitors, noting that the proliferation of competing products presented a challenge as well as an opportunity for innovation.
Despite the harsh economic realities, the company’s revenue and Profit After Tax rose by 9% and 28% respectively.
On the dividend: The Chairman further stated that the board recommended a final dividend payout of N30.517 billion in compliance with the policy of making the shareholders the ultimate beneficiaries of the company’s business growth.
Commenting on Nestle‘s expectations for 2019, Mr Ifezulike said the company “will continue to leverage our research and development capacities to delight our consumers while creating value for our business and everyone across our value chain.”
