NESTLE Declares N43.01 bn PAT in 2018 Audited Results; Proposes N38.50k Final Dividend

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 Wednesday, March 06, 2019 10.20AM / NSE With Additional Notes From FBNQuest Research

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Implications

Nestle’s 2018 PBT of N59.8bn is broadly in line with consensus 2018 PBT forecast of N60.6bn. As such, we expect to see very limited adjustments to consensus 2019E earnings forecasts.

 

Positives

Q4 sales grew by 7% y/y to N63.1bn. Nestlé’s gross margin expanded by 156bp y/y to 44.0%. Gross margin also surprised positively (+531bp) relative to our forecast. The company reported a net interest income of N381m compared with a net interest expense of –N263m in Q4 2017.

 

Negatives

Q4 PBT and PAT declined by 6% and 8% y/y mainly driven by a 33% y/y spike in opex. A 220bps y/y rise in the effective tax rate to 15.2% also contributed to the wider decline in PAT.

Ytd, Nestle’s shares have performed broadly in line with the NSE ASI. The shares have gained +1.7% ytd vs. the ASI’s +2.4% return. 

We rate the stock Underperform. Our estimates are under review.

 

Proshare Nigeria Pvt. Ltd. 

 

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4.           Corporate Earnings for the Week Ending 040518 – NESTLE Declares N8.61bn       PAT in Q1 2018 Results

5.        Nestle Nigeria Plc Announces its Closed Period


Proshare Nigeria Pvt. Ltd.

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