Nestle Nigeria Major Shareholder Acquire More Shares To Tighten Grip

Switzerland company, Nestle S.A, has acquired more shares within the Nestle Nigeria Plc. The shares acquisition by the multinational food and drink processing conglomerate corporation will tighten Nestle S.A's grip on Nestle Nigeria.

Nestle S.A is the majority shareholder in the Nigerian food beverage company, and AllNews gathered it purchased 105,569 ordinary shares of Nestle Nigeria in two days, at NGN1,400 per share. 63,700 shares were purchased on December 10, 2020.

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The second acquisition, which is 41,869 ordinary shares, took place on December 11, 2020. The transaction was made on the Nigerian Stock Exchange (NSE), where Nestle Nigeria is listed for public trading, a statement signed by Nestle Nigeria's company secretary, Bode Ayeku disclosed.

Nestle Nigeria is the maker of Nescafe, Maggi, Milo, Golden Morn, and Nestle Waters.

The acquisition of the shares by Nestle S.A comes two months after Nestle Nigeria released its financial record for the third quarter of this year, which shows the company recorded earnings growth.

Nestle Nigeria's revenue rose to NGN212,7 billion between July to September, surpassing the NGN211,3 billion generated during the corresponding period of the third quarter last year.

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While Operating Activities recorded NGN50.1 billion within Q3 2020, lower than the NGN57.04 recorded during the same period of Q3 2019. Also, Profit before income tax fell to NGN49.2 billion in Q3 2020, below the NGN56.5 billion recorded in Q3 2019.

Profit After Tax of Nestle Nigeria in third quarter 2020 also fell below the PAT posted for Q3 last year, as it recorded NGN31.9 billion, failing to surpass the NGN36.8 billion Nestle Nigeria reported as PAT in Q3 2019.