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Nestlé Nigeria Plc – the local subsidiary of Swiss-based food giant, Nestlé S.A. – has released its unaudited financial statements for the period ended 31 March, 2020, showing a 1 per cent decline in its revenue to N70.33 billion compared to N70.97 billion reported in the first quarter of 2019. The report, released today on the website of the Nigerian Stock Exchange (NSE), also shows a 13 per cent drop in the company’s profit for the period, due to increase in administrative, marketing and distribution expenses.

The company's distribution, marketing and sales expenses increased by 6.5 per cent to N11.04 billion in Q1, while its administrative expenses rose by 53.2 per cent to N3.08 billion. Nestlé said it provided lower earnings per share (EPS) of N14.21 in the reporting period, down 12.3 per cent from the N16.21 EPS declared in Q1 of 2019.

A statement by the food and beverage giant said for its Q1 financial statements, the coronavirus outbreak and the related impacts are considered non-adjusting events. This means there is no evidence of the impact of the Covid-19 pandemic within the reporting period. According to Nestlé, this is because it has a robust business continuity plan in place to ensure an uninterrupted supply of essential food and beverages.  

"Consequently, there is no impact on the recognition and measurement of assets and liabilities. Due to the uncertainty of the outcome and duration of the current events, it is too early to quantify the overall impact of the outbreak on the Company’s financial position, results of operations or cash flows in the future," said Nestlé Nigeria.

The multinational food and beverage giant said as Covid-19 continues to have an impact on a global level, it has three key priorities as a company: safeguarding the health and wellbeing of its people, ensuring business continuity to meet consumer needs and supporting communities with relief efforts.

"Nestlé Nigeria is working closely with the government, health authorities and other private sector players to respond to the challenge," the company said.  

As at 11am on Monday, Nestlé Nigeria’s stock traded flat at N1,000 per share. The company's stock price, however, rose by 8.7 per cent from N920.20 on May 4 to N1,000 on May 7.