Nestle increases shares in Nigerian subsidiary

Nestle S.A, world’s largest food company, has continued its recent spree of buying shares of its Nigerian subsidiary, Nestle Nigeria Plc.

Barely few weeks after acquiring additional equity stake valued at about N747.54 million, Nestle S.A has again acquired new shares worth about N287 million, bring the total stake on Nestle Nigeria’s shares to more than N1 billion.

Nestle S.A struck the latest deals at a premium of N1,249.65 per share compared with previous transaction price of N1,174.67 per share. In the latest acquisition, a deal was struck for 229,697 ordinary shares of 50 kobo each.

Earlier, Nestle had acquired 636,384 ordinary shares of 50 kobo each at N1,174.67 per share. The transaction increased the Swiss multinational food and drink company’s majority shareholding in Nestle Nigeria by 0.08 per cent.

“We expect full-year organic sales growth between 2.0 per cent and 3.0 per cent. The underlying trading operating profit margin is expected to improve.

“Underlying earnings per share in constant currency and capital efficiency are expected to increase. This guidance is based on our current knowledge of COVID-19 developments and assumes no material deterioration versus present conditions,” Nestle SA stated in the group’s six-month report.

Nestlé Nigeria has delivered consistent results in terms of revenue while exchange rate variations and increase in the price of some key materials have affected profitability.