Nestle Nigeria Plc, Mr has assured investors of sustainable growth in its operations and will continue to enjoy good dividend yield.

During the company’s Annual General Meeting, in Lagos, shareholders approved the payment of N38.50 kobo per ordinary share, for the financial year ended December 31, 2018. The dividend will be paid to shareholders whose names appears on the register of member on Wednesday May 29, 2019.

The meeting afforded shareholders opportunities to raise issues concerning the company operations and how to improve on its market shares.

 Nestle Nigeria Chairman David Ifezulike at the meeting explained to shareholders that 2018 was a year of significant results in the face of unpredictable changes in the business environment.

Ifezulike, said that the influx of competing products presented both a challenge and opportunity for innovation to continue to delight consumers, but despite the challenges in 2018, revenue grew by 9 per cent and profit after tax was up by 28 percent higher than the company achievement in 2017.

Reviewing its performance, Ifezulike said the 2018 financial year was occasioned by unpredictable changes in the business environment, noting that the influx of competing products presented both a challenge and an opportunity for innovation to continue to delight consumers.

According to Ifezulike, economic activity remained relatively weak in the fourth quarter of 2018, after the slight increase in activities in the third quarter due to higher oil production.

“On the average, spending power further decreased due to the elevated inflationary pressures as we witnessed more value driven consumption decisions,” he said, adding that despite the harsh operating environment, revenue increased by nine per cent while profit after tax rose 28 per cent.

He added that in line with the policy of making shareholders the ultimate beneficiaries of the company’s business growth, the board recommended a final dividend of N30.517 billion or N38.50 per ordinary share.

“As in the past years, Nestlé brands remained leaders in their categories even with the influx of competitive brands in the market,” noting that marketing initiatives focused on creating nutrition awareness for its consumers who trust the brand’s ability to deliver high quality nutritious products.

He added that the extension of single serve pack formats has helped Nestle to drive penetration of its brands, even as it invested in expansion of its routes to market, working with a motivated and dedicated distribution network.

On 2019 outlook, Ifezulike said: “Confident in the capacity of our people, our dedication to deliver high quality, tasty nutrition choices to our consumers and the continuous support of our stakeholders, we look towards 2019 with cautious optimism.

“We will continue to leverage our research and development capacities to delight our consumers while creating value for our business and everyone across our value chain.

Meanwhile, Nestle Nigeria Plc, recorded 5 percent increase in its revenue for the first quarter ended March 31, 2019, with a 49 percent growth in profit after tax during the period under consideration. The company manufactures and markets a range of high quality brands, including NESTLE PURE LIFE, GOLDEN MORN, MILO, KITKAT, MAGGI, NESCAFE and CERELAC.