Nestle Shareholders Approve N7bn Dividends

The shareholders of Nestle Nigeria Plc have approve a total dividend of N7bn, amounting to N11.05 kobo per share for the 2011 financial year.

At the 43rd annual general meeting, AGM, of  the company in Lagos, investors were also rewarded with a bonus issue of one share for every five held.

Reacting to the company’s performance, President of the Independence Shareholders Association of Nigeria, Mr. Sunny Nwosu commended the company’s  recent investment on projects will generate good return to shareholders in future.

According to him, the new Golden Morn, Flowergate investment for the production of Maggi and other products is a key driver for the future growth of the company’s operation in Nigeria.

He said, “the Flowergate investment is positioned to take advantage of the projections of the World Bank and Central Bank of Nigeria and all the good aspects of the African continent.”

He noted that the sourcing of 75 per cent of raw materials, being used for production locally will increase production capacity. Indigenous farmers and the Goss Domestic Product of the country will also enjoy growth.

“The 75 per cent local content is very encouraging. It is helping farmers to increase their production, knowing full well that whatever it is produced would be purchased, which is also adding to the country’s GDP.”

The president, Nigeria Solidarity Shareholders Association, Mr. Timothy Adesiyan, advised the company to remain focused so as to give more returns because shareholders need more value on their investments.

The chairman of the company, Mr. Olusegun Osunkeye, said that the company achieved strong growth in 2011 recording  a turnover of N82.7 billion, an increase of 21 per cent when compared with N68.3 billion recorded in 2010.

He explained that the result reflects the company’s efforts to deliver improved top and bottom line performance due to its investment in brands, capabilities, distribution, structures and capacities to ensure long term profitable growth and value creation.

By Ekene Obidike