Nestle Nigeria Plc, the West African nation’s largest food company by market value, dropped to the lowest in more than two weeks after forecasting second-quarter profit below investors’ expectations.
The shares fell for a second day, sliding 3.3 percent to 849 naira by 1:58 p.m. in Lagos, Nigeria’s commercial capital, the lowest intraday level since Feb. 18.
Nestle expects an after-tax profit of 5.04 billion naira ($31.6 million) from April to June this year, with revenue seen at 31.75 billion naira, it said in a statement to the Nigerian Stock Exchange yesterday. First-half profit last year was 9.85 billion naira, on sales of 56.7 billion naira.
“Investors are expecting about 7 billion naira profit per quarter for the company to exceed last year’s performance and sustain a high price,” David Adonri, chief executive officer of Lagos-based Lambeth Trust and Investment Co., said by telephone today.
Nestle said Feb. 20 it will pay a dividend of 18.50 naira a share as net income for the year through December climbed 28 percent to 21.1 billion naira.
The company’s shares have risen 21 percent this year, compared with 17 percent for the Nigerian Stock Exchange All-Share Index.