Look at the reds; the United States of America and China are engaged in a trade war and it’s affecting the rest of the world. All Nigerian companies that receives shipments from China will be affected.
United States imposed 200 billion tariff on China, and China responded with a 60 Billion Dollars tariff on the United States of America. Here is how it’s impacting Nigeria stock exchange, below are the top 5 money loser for the day.
Nestle Nigeria PLC reported its first-quarter earning report for the year 2019 and the company boasts a remarkable N 71 Billion in revenue. The company also saw a 5.2 percent growth for the year 2019 from the year 2018.
The total profit came in at N 12.8 Billion beating the estimate of N 8.6 Billion from the previous year. The company recorded a gross profit of N31, 468,870 for the year 2019; marketing and distribution expenses came in at -10,371,484.
Focusing on creating demand and strengthening
the brand’s loyalty program is a major concern to Nestle. According to Nestle PLX, “The company also continued to focus on
Creating Shared Value for society and its shareholders by delivering high quality
nutritious products to consumers and contributing to the growth of the local
economy through local sourcing and increasing access to clean drinking water in
the communities where it operates”.
Mauricio Alarcon, Managing Director & CEO of Nestlé Nigeria Plc said, “We
are pleased with the sustained growth of our company, the loyalty of our
consumers and the discipline and dedication of our people to provide tastier
and healthier foods and beverages”.
“Looking forward to the rest of 2019, we are optimistic that our current business model will keep delivering satisfactory results to our shareholders and to society in line with our Creating Shared Value principle. Providing high-quality and affordable nutritious products that meet the needs and preferences of our consumers will remain our priority as we help build thriving, resilient communities through sustainable local sourcing and continuous product innovation’ the CEO said during the earnings report.
Nestle stock price has been up more than 100 percent since 2017. The stock is trading at N 1,520.00 as of today April 6, 2019. The stock was selling at N 776 in the year 2017. The 52 weeks high range is N 1,340.00 to N 1,645.00. It’s market cap increased to N 1.205 T, it’s trading at 25 times price per earning and it paying 3.85 percent in dividends.
The above statement is in relation
to the Q1 2019 report, the Q2 report is due on July 30, 2019.
business is a booming business in Nigeria. Nestle manufactures hydrolyzed plant
protein mix and other food products based on its local agricultural raw
Nestle food product brands
Nestle Golden Morn
Nestle Kit Kat
Nestle Carnation milk
These products are selling at a record high in markets around the world. Nestlé is making money from direct sales, wholesales directly to the reseller, distribution to hotels, and other companies.
This statement for the period ending on March 31, 2019. The company reported N 19,122,202 profit before tax and it did not declare any new dividend price at the time of this report.
Operation result shows that Nestle has a positive quarter. 2019 reported number was up by 66% compared to the reported comprehensive income for the year 2018.
It’s a good practice for directors to be invested in companies that they are associated with. This will ensure that they make the right decisions for stakeholders because their money is also on the line. According to the recent report, only one director owns shares in Nestel company.
Mr. David Ifezulike is the Chairman of Nestle and has 56,255 shares in the company. The other directors have no shares in the company. The most alarming discovery is that the Managing Director and CEO of Nestle does not have any shares in the company.
Share repurchasing program
Companies usually buy their own shares in other to reduce the number of outstanding shares. A company can boost investor’s confidence by buying back it own stocks. This process allows the company to become its own investor; as a result, it reduces the number of outstanding shares. This can also improve the company’s earnings because only a few are left to claim the company’s earnings. Nestle reported that it didn’t buyback any shares this past quarter.
Nestle’s Asset declaration
Nestle’s Debt information
The company did not reveal much about its overall debt. It only shared little nformation about its short term debt obligation and this cannot be factored into how the company stands financially.
Nestle Nigeria PLC dividend declaration
Dividend unchanged, the company will stick to the 3.85 % dividend payout. Nestle cleared the dividend on March 4, 2019. Payments will be made to investors who are invested in Nestle stocks by May 10, 2019. The payment date is May 29, 2019.
Expressposting Nestle review
Nestle did not give enough information on how each of their brand product is performing on the market. They did not provide future guidance on what investors should expect for the next fiscal year. They did not discuss cutting cost or mention plans that will add value to the share price.
No innovations; Nestle does not have any new product on the pipeline. The stock price is still cheap, the company earned a total profit of N 12.8 billion and they are expected to earn more for the next quarter. The stock has been down about 1 percent year to date. We believe that Nestle will do it’s best to improve the share value for the benefit of the investors.
You have to contact a stockbroker in the United Kingdom to purchase or sell shares in the Exchange, you should contact your broker or share dealing service, in the same way as if you were buying shares in any company traded on the London Stock Exchange’s markets. … Like most listed companies anyone can purchase shares in the London Stock Exchange.
Nigeria stocks did not over perform today, it was an average day. FIDSON stock led with 9.65 Percent gain followed by CCNN stock with 8.56% gain. The market is now closed, trading will resume on Monday.
The Debt Management
Office (DMO) of Nigeria, on behalf of the Federal Government of Nigeria,
has launched a new retail investment programme – the “Federal
Government of Nigeria (FGN) Savings Bond” – to help enhance the savings
culture among Nigerians while providing all citizens irrespective of
income level, an opportunity to contribute to National Development; as
well as the comparatively favourable returns available in the capital
market. FGN Savings Bond is safe and backed by the full faith and credit
of the Federal Government of Nigeria, with quarterly coupon payments to
Minimum subscription of N5,000 with additions in multiple of N1,000; subject to a maximum of N50 million.
Fixed coupon will be paid quarterly to investors.
Bond tenors will range from 2 – 3 years tenor.
It will be issued on a Monthly Basis through an Offer for Subscription.
Monthly offer will be open for 5 days from the date of announcement.
The coupon/interest income from the Savings Bond are tax-free.
The bondholder enjoys coupon/interest on a quarterly basis which is paid directly to his/her bank account
It makes it possible for individuals to plan and save towards personal projects.
FGN Savings Bonds are liquid as Secondary Market
trading will be on the trading platform of the Nigerian Stock Exchange
The FGN Savings Bond is acceptable as collateral for loans.
It offers guaranteed returns, and encourages financial inclusion.
How To Invest
Investors are to subscribe through Dealing Members
of the NSE accredited by the DMO to act as Distribution Agents.
Frequently Asked QuestionsFact SheetNovember 2017 FGN Savings Bond Offer for Subscription FGN Savings Bond: Features, Trading and OpportunitiesPublic Notice on the FGN Savings Bond List of Stockbroking Firms accredited by the DMO to Market and Distribute FGN Savings Bond