Nestle Plc reported a dip in earnings per share as a spike in cost coloured stable revenues in the quarter ending June 2020.
Result Highlights – April – June
- Revenues dipped to N70.6 billion -0.3% YoY
- Gross profit margins 43% vs 48.8% YoY
- Pre-tax profits was N16.4 billion vs N17.4 billion QoQ
- Earnings per share N13.41 vs N16.9
- Nestle took on a new N5.8 billion loan during the quarter.
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Bottom Line: Even a Food manufacturing giant like Nestle could not avoid the impact of COVID-19. Despite managing to keep revenues flat year on year, increase in cost of sales hit its margins. We suspect this could be a result of the devaluation and higher cost of locally sourced inputs.
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