(Agence Ecofin) – The Swiss agri-food group Nestlé, is expected to come out of 2018, with good gains on its subsidiary in Nigeria. The period will have been marked by a net profit of 43 billion naira (118.8 million $). It is up 28% compared to the previous year 2017.
On this net result, the board of directors of the company proposed that a global dividend of 37.6 billion nairas be distributed. This is a proposal that is 90% higher than the 19.8 billion naira dividend paid in 2017.
With a 66.2% stake in Nestlé Food Nigeria, the Swiss group will win the lion's share, with a gross dividend of 24.5 billion naira ($ 67.7 million).
Apart from this dividend payment, the Nestlé Group has been lender of its Nigerian subsidiary in previous years, for nearly $ 66 million. His financial accounts show that he has returned to his money with a variety of interest rates.
Nestlé Nigeria is now free of debt and is positioning itself to face a market whose challenges are past. It has thus managed to considerably reduce its exchange rate losses and has found a favorable market in other countries such as Niger, where sales have increased by almost five.
It remains to be seen how investors in the Nigerian Stock Exchange where the company is listed, will behave. Since the beginning of the year its action oscillates between increases and decreases. The consensus of analysts estimates that the title should retreat until reaching a level of 5.6% lower than its average value of 1420 nairas.