The board of Nestle Nigeria last week projected that shareholders may, at the end of current financial year, not get more than the N12.55 cumulative dividend per share they are being offered for the comparable period of 2008.

According to the forecast, the directors project that growth in top and bottom-line could be slow, with the later being even slower, in line with the ongoing global economic crisis expected to have major impact on spending power of the populace, even as the poverty rate is expected to grow as much as 80 per cent of the population.

The forecast showed that sales income could grow by about N11.393 billion or 22.01 per cent to N63.135 billion, compared with this year's N51.742 billion. Increased cost of operation, among others, is expected to keep profit before tax trim at N12.309 billion representing a N447 million or 3.76 per cent over the last year's N11.862 billion.

Profit attributable to shareholders is expected at N8.370 billion, up by just N19 million or 0.22 per cent from N8.351 billion reported in the comparative period of last year. This represents earnings per share of N12.67, while net profit margin is expected to be 13.25 per cent down from previous 16.39 per cent as shown in the recently published audited result for the year ended December 31, 2008.

The board have however noted that the "realisation of the above forecast will depend on stable financial and business environment."

After an initial growth in its share price in reaction to the 2008 result and forecast, profit takers set in last weekend as the stock shed 826 kobo. It was however still able to gain a cumulative N20.39 each, as a result of gains recorded in the previous trading session leading to the release of its result, which began as market rumour. This was followed on Monday by another 784 kobo decline, as it closed at N149.15 each.

The 2009 forecast was however not as promising as the previous one, where net profit growth significantly outpaced that of sales income for the year, following which the board offered to pay a final dividend of N10.60 per share to those whose names are in the register of members till the close of business on April 20, while payment is scheduled for April 29, after the shareholders must have approved the recommendation at the annual general meeting a day earlier. The final payout is in addition to the 195 kobo interim per share dividend paid on December 1, 2008, representing N8.289 billion cumulative dividend or almost the entire net profit for the period.

According to the result, sales income for the year amounted to N51.742 billion, up by about N7.716 billion or 17.256 per cent, when compared to the previous year's N44.027 billion. Profit before tax at N11.862 billion rose by about N3.399 billion or 40.16 per cent, as against N8.463 billion reported in the corresponding period of 2007, while net profit growth was faster at N2.889 billion or 53.09 per cent at N8.331 billion from N5.441 billion. A breakdown of the figures shows earnings per share of N12.61, as against the previous years 917 kobo from which the directors paid only 370 kobo each as dividend. Also, net profit margin for the period rose to 16.10 per cent, better than previous year's 12.35 per cent.