Shareholders of Nestle Nigeria Plc on Tuesday unanimously endorsed a final dividend of N30.52 billion recommended by the company for the financial year ended Dec. 31, 2018.
The shareholders gave the approval at the company’s 50th Annual General Meeting (AGM) in Lagos.
The final dividend which translated to N38.50 per share subject to withholding tax will be paid on May 29.
Speaking at the meeting, Mr Timothy Adesiyan, Patron, Nigerian Shareholders’ Solidarity Association, lauded the company for ensuring steady and enhanced dividend in the past years.
Adesiyan said that the shareholders were happy with the size of dividend being paid by the company in spite of unfriendly operating environment.
He said that the company’s interim dividend was timely and enabled the shareholders to address pressing needs.
The shareholder activist also said that the shareholders were happy with high quality nutrition awareness created by the company across the country with its products.
Adesiyan said the company’s marketing expansion drive was well appreciated, noting that it was impacting on its turnover.
Mr Boniface Okezie, National Coordinator, Progressive Shareholders Association of Nigeria (PSAN), urged the company to expand its operations in the South-East to improve market share.
Okezie noted that the company should construct a water factory in the South-East as soon as possible.
He said the company needed to decentralise its operations to save cost, noting that N43.4 billion marketing and distribution expense during the period under review was on the high side.
The PSAN boss also called on the company to develop strategies aimed at reducing the huge unclaimed dividend figure.
Addressing the shareholders, Mr David Ifezulike, the company’s Chairman, assured them that it would remain committed to enhanced value creation to all stakeholders.
Ifezulike said that Nestle’s brands remained leaders in their categories even with the influx of competitive brands in the market.
“Our marketing initiatives focuses on creating nutrition awareness for our consumers who continue to trust us to deliver high quality nutritious products,” he said.
According to him, the company invested in the expansion of its routes market, working with a motivated and dedicated distribution network.
On outlook for 2019, he said the company would continue to leverage research and development capabilities to delight it’s consumers, while creating value for business and everyone across the value chain.
“Confidence in the capability of our people, our dedication to deliver high quality, tasty nutrition choices to our stakeholders, we look towards 2019 with cautious optimism,” Ifezulike said.
The company during the review period posted a turnover of N266.2 billion against N244.1 billion achieved in the comparative period of 2017.
The profit after tax stood at N43 billion in contrast with N33.7 billion posted in 2017