NESTLE Plc: PAT Dips by 16.84% to N21.83 bn in HY-2020
Dear Client/Reader,
Nestle Plc. HY’2020 results showed that revenue dipped by 0.62% from N141.91 bn in HY’2019 to N141.03 bn in HY’2020. Similarly, gross profit went down by 7.93% to N60.84 bn in HY’2020 from N66.08 bn in HY’2019. The decline in gross profit was driven by the fall in revenue and by a 5.75% hike in cost of sales. Profit from operations declined by 15.10% from N40.43 bn in HY’2019 to N34.33 bn in HY’2020, due to a 50.68% increase in administrative expenses. Profit before tax fell by 16.26% to N33.86 bn in HY’2020 from N40.44 bn in HY’2019, on the back of a 47.03% decline in finance income and a 5.48% rise in finance costs. In the same vein, profit after tax declined by 16.84% from N26.25 bn in HY’2019 to N21.83 bn in HY’2020, despite a 16.48% decline in income tax expense. Consequently, earnings per share fell by 16.85%, from N33.11 in HY’2019 to N27.53 in the current period. Nestle currently trades at N1,175.00
