Nestle India said on Wednesday that its board has recommended a second interim dividend of Rs 120 per share. The FMCG giant also announced its Q2 results on October 19, 2022. This is in addition to the first interim dividend of Rs 25 per equity share paid on May 6, 2022.
“The board of directors, at their meeting held today (Wednesday), declared second interim dividend of Rs 120 per equity share of Rs 10 each for the year 2022 on the entire issued, subscribed and paid-up share capital of the company of 9,64, 15,716 equity shares of the nominal value of Rs 10 each,” Nestle India said in the filing.
A dividend means the distribution of surplus from the profits by a listed company to its shareholders.
Nestle India reported a bigger-than-expected rise in third-quarter profit, benefiting from price increases and a rebound in demand for its chocolates and packaged foods in rural areas.
The Maggi noodles maker’s profit rose 8.3 per cent to Rs 6.68 billion ($81.1 million) in the quarter that ended September 30.
The company’s revenue jumped 18.3 per cent YoY to Rs 4,591 crore during July-September 2022. Its total sales stood at Rs 4,567 crore and the sales growth was 18.2 per cent in Q2FY23, which was the highest sales growth during a quarter in the past five years.
“Growth has been very strong in the large metros and mega cities and continued to be robust across smaller town classes, including rural markets,” Nestle India Managing Director Suresh Narayanan said in a statement. “We are witnessing early signs of stability in prices of a few commodities such as edible oils and packaging materials,” Nestle said in its statement.
Record Date Declared
It added that the second interim dividend for the year 2022 will be paid on and from November 16, 2022, to those members whose names appear in the register of members of the company and as beneficial owners in the depositories, as on the record date fixed for the purpose i.e., November 1, 2022, as intimated vide our letter PKR:GA 48:22 and 49:22 dated October 10, 2022.
The record date is the last date on which shareholders are eligible to receive a dividend or distribution. It is established by the company’s board. So, in this case, the record date for determining the eligible shareholders is November 1 and the ex-date is October 31. This means that if you are considering buying the stock of Nestle for its dividend then you need to buy the same before its ex-date. On the ex-date, the stock adjusts in price in respect of the corporate announcement made.
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