NESTLE NIGERIA PLC - FY’15 earnings berth in line with expectation
NESTLE released FY’15 numbers showing a 6% and 7% y/y growth in revenue and net earnings respectively, directly in line with our estimates. Q4, not surprisingly, was the strongest quarter in revenue performance, contributing 29% to FY revenue. However, on a quarter on quarter basis growth was slower at 3% (5-year Q4 average: 6%) following the unusually strong Q3’15 performance. Furthermore, earnings came in lower than Q3 following relatively higher cost of sales in Q4 (we recall that NESTLE front loaded the purchase of raw materials in Q4’14 ahead of the November naira devaluation) and higher interest expense charge. The Food segment outperformed the Beverage segment for the second consecutive year running following strong performance in the maggi brand.
Nestle Milkpak is engaged in the production, sale and export of dairy products, confectionery, culinary products and fruit juices. Co.'s products include Milkpak Milk, Milkpak Butter, Milkpak Uht Cream, Milkpak Desi Ghee, Nido powdered milk, Milo Powder chocolate energy food drink, Milo RTD, Nescafe Classic instant coffee, Frost fruit drinks, Nestle Orange Juice, Lactogen infant milk formula, Cerelac infant cereal, Nestle Rice infant cereal, Nestle Wheat infant cereal, Neslac growing up milk, Maggi 2-Minute Noodles, Nestle Sweet Treats dessert mixes, Polo mints and candies, Kitkat, Smarties, Fox's, Nestle Lion, Nestle Crunch, Nestle Classic milk chocolate and Nestle Pure Life bottled water.
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