As from today (Friday), shareholders of Nestle Nigeria Plc will begin to enjoy N18.50 final dividend declared by the company for the financial year ended December 31, 2012.

This is in addition to an interim dividend of N1.50 earlier declared and paid to shareholders during the same financial year, thus bringing the total dividend to N20 per share.

This amount represents an increase by 59 per cent over the total payout of N12.55 paid as dividend at the end of the 2011 financial year.

Speaking at the company’s 44th Annual General Meeting in Lagos on Thursday, the outgoing Chairman, Nestle Nigeria, Chief Olusegun Osunkeye, said that the amount declared as dividend represented a payout ratio of 75 per cent.

He said that the company, in the year under consideration, delivered excellent performance in its top and bottom line despite a very challenging year characterised by severe cost pressures and intensified competition due to the result-oriented strategies of the company.

He said, “We continued to outperform competition despite the difficult economic environment of 2012 and the deteriorating security situation in the country, particularly in the northern region, we are pleased to maintain positive momentum on our path towards long-term sustainable, profitable and capital efficient growth.

“In the year under consideration, we increased the investments behind our brands, and we invested responsibly and sustainably, expanding our manufacturing footprint, while continuing to reduce the environmental impact of our business.”

A look at the company’s results showed that it achieved strong growth in 2012 with a turnover of N116.71bn and an increase of 19 per cent over N97.961bn recorded the previous year. Also, profit for the year stood at N21.137bn, representing a 28 per cent rise over N16.49bn in 2011.

Its earnings per share stood at N26.67 up from N20.81 at the end of the 2011 financial year, while net assets was up by 47 per cent to N43.13 up from N29.28 the previous year.

Osunkeye also used the opportunity to announce his retirement from the board, having served as chairman for 14 years and a member of the board for 40 years. He expressed gratitude to shareholders and workers of the company for the support given to him in all the years of service.

He asked for more support for his successor, Mr. David Ifezulike, who has worked in the company for over 22 years and also served on its board for over 10 years.

Shareholders at the meeting commended Osunkeye for the heights the company attained in the last 14 years, and for declaring the highest dividend in the history of the country.

They asked the company to ensure that it declared bonus issues for them in the coming years.

Source: The Punch (by Udeme Ekwere)