Nestle Food office
Shares in consumer goods producing firm, Nestle Nigeria Plc rose by N9.00 per share Wednesday following the declaration of an interim dividend of N1.50 per share for the third quarter(Q3) ended September 30, 2012.
The company had last month released its Q3 result, where it posted revenue of N85.029 billion, up by 21 per cent above the N70.54 billion it recorded the corresponding period of 2011. Profit before tax rose by 40 per cent from N12.992 billion to N18.281billion, while profit after tax grew by 63 per cent from N9.437 billion to N15.391 billion.
Two weeks after the release of the performance, Nestle Nigeria yesterday announced that it would pay an interim dividend of N1.50 per share, which is the same interim dividend paid last year.
Although the company is known for paying dividend twice every year, the value of the interim dividend was slashed last year to N1.50, from N1.95 paid the previous year.
In all, shareholders of the company received a total dividend of N12.55 per share for 2011 financial year, after paying a final dividend of N11.05.
While the company maintained the same level of interim dividend, market operators are optimistic that if the company would be able to consolidate on the impressive Q3 growth in profit, it may reward investors with higher final dividend for the 2012 year.
Shareholders are to receive the interim dividend as from December 24, 2012, which the company has fixed as the payment date.
Gladdened by the news of the interim dividends, investors increased the demand for Nestle Nigeria shares, making the equity to close as the highest price gainer, compared with a depreciation of N48.50 to record the highest decline the previous day.
Generally, the market reversed the three-day bear run to close 0.21 per cent higher at 26,346.70. Market capitalisation added N18 billion to be at N8.396 trillion.