Nestlé Nigeria Plc

Annual Report for the year ended 31 December 2022

Nestlé Nigeria Plc

Annual Report for the year ended 31 December 2022

Contents

Page

Directors and Other Corporate Information

3

Financial Highlights

4

Directors' Report

5

Statement of Corporate Responsibility for the Financial Statements

12

Statement of Directors' Responsibilities in relation to the preparation of financial statements

13

Statutory Audit Committee Report

14

Independent Auditor's Report

15

Statement of Profit or Loss and Other Comprehensive Income

20

Statement of Financial Position

21

Statement of Changes in Equity

22

Statement of Cash Flows

23

Notes to the Financial Statements

24

Other National Disclosures

65

Value Added Statement

66

Five-Year Financial Summary

67

2

Nestlé Nigeria Plc

Annual Report for the year ended 31 December 2022

Directors' and other Corporate Information

Board of Directors:

Registered Company Number

Company Secretary/

Legal Adviser

Registered Office:

Registrar:

Independent Auditor:

Members of the

Audit Committee

Mr. David Ifezulike

Chairman

Mr.Wassim Elhusseini (Lebanese)

Managing Director/Chief Executive Officer

Mr. Jagdish Singla (Indian)

Finance & Control Director - Up to 31/05/2022

Mr. Sarmad Saleem (Pakistani)

Finance & Control Director - From 01/06/2022

Mr. Ibukun-olu Ipinmoye

Executive Director

Mr. Mauricio Alarcon (Mexican)

Non-Executive Director

Mr. Ricardo Chavez (Mexican)

Non-Executive Director

Mr. Gbenga Oyebode

Independent Non-Executive Director

Ms. Juliet Ehimuan

Independent Non-Executive Director

Mrs Adebisi Lamikanra

Independent Non-Executive Director

6540

Mr. Bode Ayeku

22-24 Industrial Avenue

Ilupeju, Lagos

Tel: 01 - 2798184, 2798188, 2790707

Greenwich Registrars & Data Solutions Limited

274 Murtala Muhammed Way

Alagomeji, Yaba, Lagos

Tel: 01- 5803369, 5451399, 5803367

Ernst & Young

10th & 13th floors, UBA House

57 Marina

Lagos, Nigeria

Tel: +234(1)6314500

Mr. Matthew Akinlade

Chairman (Shareholders' Representative)

Alhaji Kazeem Owonikoko Bello

Shareholders' Representative

Mr. Christopher Nwaguru

Shareholders' Representative

Mr. Gbenga Oyebode

Directors' Representative

Mrs. Adebisi Lamikanra

Directors' Representative

3

Nestlé Nigeria Plc

Annual Report for the year ended 31 December 2022

Financial Highlights

In thousands of naira

2022

2021

Increase/

(decrease) %

Revenue

446,819,260

351,822,329

27%

Profit before income tax

71,109,371

61,875,342

15%

Profit for the year

48,965,488

40,037,277

22%

Declared dividend*

40,029,141

47,955,703

-17%

Issued Share capital

396,328

396,328

0.00

Total equity

30,291,224

21,378,209

42%

Data per 50k share

Basic earnings

N61.77

N50.51

Declared dividend

N50.50

N60.50

Net assets

N38.21

N26.98

Dividend per 50k share in respect of current year results only

Interim dividend declared

N25.00

N25.00

Final dividend proposed**

N36.50K

N25.50K

Stock Exchange Information

Stock exchange quotation at 31 December

in Naira per share

1,100.00

1,556.50

-29%

Number of shares issued ('000)

792,656

792,656

-

Market capitalisation at 31 December (N: million)

871,922

1,233,769

-29%

  • Declared dividend represents the interim dividend of N25.00 declared during the year from the current year 2022 profit and final dividend of N25.50K proposed for the preceding year but paid in the current year.
  • The directors propose a final dividend of N 36.50K, from current year profit (2021:N25.50) per share on the issued share capital of 792,656,252 (2021:792,656,252) ordinary shares of 50k each, subject to approval by the shareholders at the Annual General Meeting.

4

Nestlé Nigeria Plc

Annual Report for the year ended 31 December 2022

Directors' Report

  1. Financial Statements
    The directors present their annual report on the affairs of Nestlé Nigeria Plc ("the Company") for the year ended 31 December 2022.
  2. Principal Activities
    The principal activities of the Company continue to be the manufacturing, marketing and distribution of food products including purified water throughout the country. The Company also exports some of its products to other countries within and outside Africa.
  3. Operating Results
    The following is a summary of the Company's operating results:

2022

2021

N'000

N'000

Revenue

446,819,260

351,822,329

Results from operating activities

86,866,483

71,965,945

Profit before income tax

71,109,371

61,875,342

Profit for the year

48,965,488

40,037,277

Total comprehensive income for the year

48,965,488

40,037,277

4 Dividend

The Directors recommend the payment of a final dividend of N 36.50K (2021: N25.50K) per share having earlier declared an interim dividend

of N25.00 (2021: N25:00) from the profit of 2022 on the issued share capital of 792,656,252 (2021:792,656,252) ordinary shares of 50k each. The proposed final dividend of N 36.50K is from the after tax profit for the year ended 31st December 2022. If the proposed final dividend of N 36.50k is approved by the shareholders, it will be subject to deduction of withholding tax at the applicable rate and the total dividend paid for the year will be N 61.50K.

5 Directors and Their Interests

  1. The directors who served during the year and their interests in the shares of the Company at the year end were as follows:

Interest in the Ordinary Shares of

the Company

2022

2021

Mr. David Ifezulike

- Chairman

56,255

56,255

Mr. Wassim Elhusseini (Lebanese)

- MD/CEO

Nil

Nil

Mr. Jagdish Singla (Indian)

Up to 31/05/2022

Nil

Nil

Mr. Sarmad Saleem (Paskitani)

From 01/06/2022

Nil

Nil

Mr Ibukun-olu Ipinmoye

2,328*

2,328*

Mr. Mauricio Alarcon (Mexican)

Nil

Nil

Mr. Ricardo Chavez (Mexican)

Nil

Nil

Mr. Gbenga Oyebode

Nil

Nil

Ms. Juliet Ehimuan

2146

2146

Mrs Adebisi Lamikanra

Nil

Nil

No Shares of the Company were held by Nestle S.A Switzerland and Societe Des Produits Nestle S.A. as indirect holdings in favour of Directors. However, as at 31 December 2022, Mr. Wassim Elhusseini has 2,438 shares of Nestlé S.A. Switzerland. Mr. Jagdish Singla has 1,651 shares of Nestlé S.A. Switzerland plus 1214 RSUP options of Nestlé S.A. Switzerland and 75 shares of Nestlé India Limited; Mr Sarmad Saleem has 1,134 shares of Nestlé S.A. Switzerland. Mr. Ricardo Chavez has 22,047 shares of Nestlé S.A.Switzerland and Mr. Mauricio Alarcon has 7,626 shares of Nestlé S.A. Switzerland. Mr. Mauricio Alarcon and Mr. Ricardo Chavez are representing Nestlé S.A., Switzerland on the Board. *Out of the 2,328 shares of Nestle Nigeria Plc held by Mr. Ibukun-olu Ipinmoye, 2,250 shares are managed on his behalf by FBN Quest Trustees Limited,while the remaining 78 shares are registered in his name. Mr. Ipinmoye has 576 RSUP/PSUP stock units of Nestle S.A. Switzerland.

  1. Mr. Gbenga Oyebode is the Chairman of CFAO Nigeria Plc, one of the vehicle suppliers. Mrs. Adebisi Lamikanra is a director of Standard Chartered Bank,one of our bankers. In accordance with Section 303 of the Companies and Allied Matters Act of Nigeria, they have notified the Company of their position with CFAO Nigeria Plc and Standard Chartered Bank respectively.
  2. No share options were granted to the directors by Nestlé Nigeria Plc. However, Nestlé S. A., the ultimate parent company has a share based payment scheme offered to certain key management personnel including certain directors of the Company. Information relating to this share based payment scheme is disclosed in Note 23(a)(iv) to the financial statements.

5

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Nestlé Nigeria plc published this content on 28 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 February 2023 11:50:16 UTC.