By Amaka Ifeakandu
Lagos
Shareholders of Nestle Nigeria Plc has approved total dividend of N26.950 billion for the financial year ended December 2014.
The amount translated into N27.50 kobo per share held by investors. The company paid interim dividend of N10.00 and final dividend of N17.50 kobo which represents N7.926 billion and N13.871 billion respectively.
Commending the board and management for the company performance in 2014, they urged them to introduce strategies that would reduce net finance cost which increased from N1.1785 billion in 2013 to N4.754 billion at the end of December 2014.
Speaking on behalf of the shareholders President of Progressive shareholders Association of Nigeria, Boniface Okezie, said the performance of the company in the first quarter of 2015 was not encouraging, stressing that the result show a wrong signal that the company might not pay good dividend at the end of 2015 financial year.
Expressing the need for the Nestle to open water factory in the Eastern part of the country, he said there was need for the company introduce business that would bring more money to the company.
Addressing shareholders at the 46th Annual general meeting in Lagos, the Chairman of Nestle, Mr David Ifezulike said “the result in 2014 are proof of the many good things that are happening in our company, stressing that the company has delivered on its short-term commitment while continuing to strengthen the foundations of future growth.
“Our success has always been based upon determination to stay the course and look ahead to understand the environment in which we operate, to organise ourselves to seize opportunities to deliver profitabile growth, now and in the future.
He also told shareholders that construction work of the new ultra-modern Nestle Waters Factory located in Abaji near Abuja has reached advanced stage and it would officially inaugurated at the last quarter of 2015.
He however said that the new N4.6 billion factory which occupies 14.13 hectre will further enhance the company’s competitive edge as the leading healthy hydration company in Nigeria.
On the company performance, he said the revenue grew by eight per cent from N133.084 billion recorded in the preceding year to N143.328 billion. He said that the profit before tax moved down from N26.047 billion achieved in the preceding year to N24.445 billion, representing a drop of six per cent while profit for the year stood at N22.445 billion from N22.258 billion reported in the preceding years.
He further said that the foreign loans taken by the company was for long term investment, stressing that it is cheaper when compare with local credit. He further said that the board is doing everything possible to reduce the increase on unclaimed dividend. He said that electronic dividend payment could only be processed for shareholders having current account.
