After several sessions of 7% growth in May, the Nestlé Côte d'Ivoire stock took a break in June, with a weaker evolution. The share, which until then attracted investors, seems to be approaching its equilibrium level on the BRVM.

The value of Nestlé Côte d'Ivoire slowed down its progression during the month of June on the Regional Stock Exchange (BRVM), with a rise of 5.8%. In May, it had achieved an increase of 233.3%, its best monthly performance since 2016, according to market data collected by Ecofin Agency. For investors who bought the stock in April 2020 and held it, they multiplied their stake by 17.14.

Despite the slowdown, the stock still has room to grow. For its first dividend in five years, the company planned to distribute CFA363.3 per share. At the current share price, this represents a yield of 10%, a level of remuneration above the market average.

The interest in the stock was pronounced after the company announced that it had achieved a net profit for 2020 of CFA20.9 billion ($37.8 million), up 700% from 2019. It also announced that it would distribute a dividend, the first in the last five years. The troubled times now seem to be over, and the year 2021 has started under a good sign, with a net profit of CFA4 billion, up 893%.

Nestlé CI does not make its audited accounts available in IRSF (international standards) format. It is therefore difficult to analyze its financial performance. However, according to data from the Capital IQ platform, even though Nestlé CI has reduced its debt to equity ratio, it remains significant at $58 million, or 152.7% of its equity as of March 31, 2021.

Idriss Linge