7

Nestle Nigeria Plc

The Statement of Financial Position as at 31st December
2022 2021
Assets
Property, plant and equipment 116,739,370 98,964,157
Right of Use Asset 4,976,420 4,848,732
Long term receivables 2,816,337 2,501,289
Long Term Prepayments 0 0.00
Total non-current assets 124,532,127 106,314,178.00
Inventories 88,340,532 58,964,125
Right of return assets 72,879 45,443
Trade and other receivables 82,237,026 43,302,758
Contract Assets 0 0.00
Prepayments 1,929,037 1,093,841.00
Cash and cash equivalents 117,932,430 100,518,159
Total current assets 290,511,904 203,924,326
Total assets 415,044,031 310,238,504.00
Equity 1,245,132,093 930,715,512.00
Share capital 396,328 396,328
Share premium 32,262 32,262
Share based payment reserve 90,127 113,459.00
Retained earnings 29,772,507 20,836,160
Total Equity 30,291,224 21,378,208
Liabilities
Loans and borrowings 147,006,556 76,432,859
Employee benefits 4,359,648 4,038,600
Lease liabilities 127,889 283,135
Deferred tax liabilities 14,854,152 12,587,716
Total non- current liabilities 166,348,245 93,342,310
Trade and other payables 166,161,861 148,384,425
Contract liabilities 16,548,425 15,452,355
Refund liabilities 112,333 78,963
Bank Overdraft 0 2,352
Current tax liabilities 26,208,706 28,281,629
Lease liabilities 53,717 184,821
Loans and borrowings 8,293,512 431,943
Provisions 1,026,008 2,701,498
Total current liabilities 218,404,562 195,517,985
Total liabilities 384,752,807 288,860,295.00
Total equity and liabilities 415,044,031 310,238,504
 Common Sized

2018 2017 2020 2019 2018 2017

28.1% 31.9%
1.2% 1.6%
0.7% 0.8%
0.0% 0.0%
30.0% 34.3%
21.3% 19.0%
0.0% 0.0%
19.8% 14.0%
0.0% 0.0%
0.5% 0.4%
28.4% 32.4%
70.0% 65.7%
100.0% 100.0%
300.0% 300.0%
0.1% 0.1%
0.0% 0.0%
0.0% 0.0%
7.2% 6.7%
7.3% 6.9%
0.0% 0.0%
35.4% 24.6%
1.1% 1.3%
0.0% 0.1%
3.6% 4.1%
40.1% 30.1%
40.0% 47.8%
4.0% 5.0%
0.0% 0.0%
0.0% 0.0%
6.3% 9.1%
0.0% 0.1%
2.0% 0.1%
0.2% 0.9%
52.6% 63.0%
92.7% 93.1%
100.0% 100.0%
Nestle Nigeria Plc
Statement of Profit or Loss for the period ended 31st December

Revenue
Cost of Sales
Gross Profit

OPEX
Total Operating Profit

Other Income
Profit Before Interest & Tax (PBIT)

Interest Expense
Profit Before Tax (PBT)

Tax Expense
Profit After Tax (PAT)

Inflation Rate 12.09% 16.50% 15.70%

 Common Sized
1st December
2022 2021 2019 2020 2019

446,819,260 351,822,329 100.00% 100.00%

291,054,270 219,985,914 65.14% 62.53%
155,764,990 131,836,415 34.86% 37.47%
0.00% 0.00%
68,898,507.00 59870469 15.42% 17.02%
86,866,483.00 71,965,946.00 19.44% 20.46%
0.00% 0.00%
4,777,113 1,987,042.00 1.07% 0.56%
91,643,596.00 73,952,988.00 20.51% 21.02%
0.00% 0.00%
20,534,225 12,077,645 4.60% 3.43%
71,109,371.00 86,030,633.00 15.91% 24.45%
0.00% 0.00%
22,143,883 -21,838,065 4.96% -6.21%
48,965,488.00 64,192,568.00 10.96% 18.25%

-23.72%
2018

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 Nestle Nigeria Plc
Financial Statement Ratio Analysis
Name of Ratio

A PROFITABILITY RATIOS

1 Nominal Sales Growth (N.S.G.)

Growth

2 Real Sales Growth (R.S.G.)

Margin 3 Gross Profit Margin (G.P.)

Denoted

4 Operating Profit Margin (O.P.)

5 Return on Equity (R.O.E.)

Returned
Denoted 6 Return on Sales (R.O.S.)

7 Return on Assets (R.O.A.)

8 Return on Capital Employed (R.O.C.E.)

B LIQUIDITY RATIOS

1 Current Ratio (2:1)

 2 Quick Ratio (1:1)
C EFFICIENCY RATIOS

1 Inventory days

2 Receivable days

3 Operating cycle

4 Payable days

5 Cash cycle

6 Asset turnover
D LEVERAGE RATIOS

1 Debt to Equity ratio

2 Debt to Total Assets

3 Interest Coverages
 nm
o Analysis
Formula for the ratio Calculate the ratio Calculate the ratio
(Calculation) (Calculation)
2022 2021

((CYS - PYS) / PYS) * 100

((CYS / (1+i) - PYS) / PYS) * 100

(G.P. / Revenue) * 100 35% 37%

(O.P. / Revenue) * 100 19% 20%

(P.A.T. / Equity) * 100 162% 162% 300%

(P.A.T. / Sales or Revenue) * 100 11% 11% 18%

(P.A.T. / Total Assets) * 100 12% 12% 21%

(P.B.I.T. / Capital Employed) * 100

Current assets / Current Liabilities 1.33015492597632 1.04299523135941

Cash & Cash Equivalents + Receivables /
Current Liabilities 0.91650766891948 0.735589194006884

(Inventory / Cost of Sales) * 365 111 98

(Receivables / Sales) * 365 67 45

Inventory days + Receivables days 178 143

(Payables / Cost of Sales) * 365 208 246

Operating cycle - Payable days -30 -103

Reevenue or Sales/Total Assets 1.08 1.13

Total Interest Bearing Liabilities / Total

Equity 513% 362%

Total Interest Bearing Liabilities / Total

Assets 37% 25%

PBIT / Interest Expense 4.46 6.12

 What it Measures

Yr on Yr growth in company's Revenue. Driven by Market

Share, Increasing/Decreasing demand, Changing Prices,
Economic & Tax policies
Yr on Yr growth in company's Revenue - Inflation. (ie
Adjusted for the impact of inflation). It is not affected by
change in prices.

Profitability of a Product & the Production process.

Influenced by factors that affect prices and cost of sales.

Quality of Earnings of a business or its ability to control

overhead cost (operating expenses)

How much PAT is Earned for every Naira of shareholders'

funds invested in a business.

How much Revenue hit bottomline; Influenced by Cost

(Internal and external)

Amount of PAT Earned by every Naira invested in the

assets of a business (Asset utilisation to make profit).

How much is returned to the providers of equity (capital)

and interest bearing liabilities. Infulenced by amount of
interest bearing finance is raised.

The ability of a company to meet its short term

obligations using its current assets
The ability of a company to meet its short term
obligations using its most liquid assets

How long Inventory will be in store before they are sold

How long it takes for debtors (customers owing) to pay

How long it takes for cash to go out and come back in

How long it takes for a company to pay it's suppliers

Describes how long a business is out of cash or requires

cash for its operating cycle OR How long a business has
excess cash to support operating cycle. Also respresent
the no of days it takes for a company convert its
investments in inventory and other resources into cash
flows from sales

How efficiently a company uses its assets to generate

sales. Measured in no of times

Indicators of how exposed your capital structure is to

risk. The higher the rate, the higher the risk

Indicators of how exposed your business as a whole are

to risk. The higher the rate, the higher the risk

How many times can we pay interest expense by your

PBIT. The higher the cover, the lesser the interest burden.
 Name of Ratio

Profitability
Growth ratios Sales growth
Real Sales Growth

Margin Denoted Ratios Gross Profit Margin

Operating Profit Margin

Return Denoted ratios Return on Sales

Return on Equity
Return on Assets
Return on Capital Employed

Liquidity
Current Ratio (2:1)
Quick Ratio(1:1)

Eficiency ratios
Inventory days
Receivables days
Operating Cycle
Payables Datys
Cash Cyle
Asset Turnover

Leverage Ratios
Deb to equity ratio
Debt to Total Assets Ratio
Interest Coverage
Formula for the Ratio Calculation
2020 2019 2018

(CYS - PYS)/PYS*100%
((CYS)/(1+i) - PYS )/PYS*100%

Gross profit / Revenue *100%

Operating Profit /Revenue *100%

PAT/ Revenue *100%

PAT/ Equity *100%
PAT/ Total Assets*100%
PBIT/ CE(Total Asset - Current Liabilities)

Current Assets/ Current Liabilities

(Trade Receivables + Cash & Cash Equivalents)/ Current Liabilities

(Inventory / Cost Sales) *365

(Receivables / Revenue)*365
Receivables days +Inventory days
(Payables/ Cost of Sales) *365
Operating Cycle - Payables Days
Revenue/ Total Assets

Total Interest Bearing Debt/ Equity*!00%

Total Interest Bearing Debt/ Total Asset*!00%
PBIT/ Interest Expense
Calculation What it meausres
2017 2016
TRADING ASSEST
2021 2022
Inventories 58,964,125 88,340,532
Right of return assets 45,443 72,879
Trade and other receivables 43,302,758 82,237,026
Prepayments 1,093,841.00 1,929,037
TOTAL 103,406,167 172,579,474

SPONTANEOUS FUNDING
Trade and other receivables