NB’s Q2 2016 results showed moderation in sales and a spike in net finance cost which weighed on bottom-line performance. Relative to our estimate, sales was down by over -4% y/y while PBT declined by -29% y/y, due largely to spike in net finance cost.
Unilever Q2 2016 results showed sustained growth in both top and bottom-line figures, buoyed by lower-base effect. However, input costs pressure resulted in massive contraction in margins across the P& L line.
Following Nestle’s Q22016 numbers, which showed a negative bottom-line position in spite of sustained uptick in volume, we have reviewed our forecast for the Consumer Goods player to reflect the impact of further weakness in Naira value on bottom-line growth for the rest of 2016.