Month: October 2017

Guinness Nigeria off to a strong start in Q1 as revenue surge 30%

BUSINESS, New Products, News, NIGERIA, Nigerian state programs, wazobia companies
Guinness Nigeria Plc on Thursday reported a 30% increase in revenue for the first quarter ended 30th September 2017. The Nigerian unit of British drinks maker Diageo Plc said that sales hit N29.9bn ($82.3m) in the first three months of its financial year, up from N23bn ($63.3m) it recorded in the same period in 2016. Gross profit for the period grew 24% to N10.4bn ($28.7m) reflecting continued growth within the spirits business as well as benefit of an expanding portfolio, but against the backdrop of lapping the inventory reduction last year, the company said. Commenting on the results, Peter Ndegwa, Managing Director/CEO, Guinness Nigeria Plc said: “Although trading conditions continue to be difficult, we delivered a credible performance with a net sales growth of 30% for the quarter. Thi

NECA asks members to decline invitation to Public hearing on soft drinks

BUSINESS, New Products, News, NIGERIA, Nigerian state programs, wazobia companies
The Director General, Nigeria Employers’ Consultative Association (NECA), Mr. Olusegun Oshinowo, has asked its members to decline an invitation by the Federal House of Representatives ad-hoc Committee investigating the production and distribution of soft drinks manufactured by the Nigerian Bottling Company Limited (NBC) and other drinks produced or marketed in Nigeria. “On the request to appear before the committee, we advise members to stay off and not honour the invitation in view of our ongoing court case against the Speaker and the House, which is presently at the Supreme Court. The House is very well aware of this position,” he said in a correspondence to members dated October 14, 2017. The House had passed a resolution setting up an ad hoc committee to investigate the safety of carbo

House panel pledges to continue soft drinks probe

BUSINESS, New Products, News, NIGERIA, Nigerian state programs, wazobia companies
Majority Leader of the Federal House of Representatives, Hon. Femi Gbajabiamila, has said that the National Assembly has power to carry out an investigation into a matter involving privately-run companies. Speaking as the chairman of the House ad hoc Committee investigating the production and distribution of soft drinks manufactured by the Nigerian Bottling Company PLC (NBC), and other soft drinks sold in the country, Hon. Gbajabiamila stressed that it was equally erroneous to assume that the National Assembly would halt a probe because a party involved had taken the matter to court. Gbajabiamila made the clarification on Wednesday, at a meeting held in continuation of the 3-day public hearing by the committee. He specifically chided the Nigeria Employers Consultative Association (NECA) fo...

Coca-Cola Q3 profit rises 38% on cost efficiencies, sales dip on refranchising costs

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The Coca-Cola Company (TCCC) reported net revenue of $9.1bn for the third quarter of 2017, down 15% from last year’s $10.6bn, blaming the decline on ongoing refranchising of its bottler territories. The soda giant said that total unit case volume was unchanged from last year, although certain emerging markets in Latin America and developing markets showed improving trends with slightly positive case volume growth, which offset declines in developed markets that were impacted by weather and the cycling of strong results from the prior year. Net profit attributable to shareholders of Coca-Cola grew 38% to $1.45bn from $1.05bn in the previous year, driven by 18% decline in cost of goods sold and 20% drop in selling and administrative expenses. Coke said it gained or maintained value share in

Focus on improving efficiencies lifts Nigerian Breweries nine-Month results

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Nigerian Breweries Plc (“NB”), the country’s largest brewer said on Thursday that sales for the nine-months to September ending grew 14% to N255bn ($700m). In the same period in 2016, the firm recorded revenue of N223bn ($614m). The company which is a unit of Amsterdam-based Heineken N.V. said that changing market dynamics resulted in increased costs and expenses. The firm’s cost of sales jumped 18.1% in the nine months to September and 15.2% in the third quarter alone. While the company’s overall net finance cost dropped 23%, it spiked 47% in the third quarter to N2.6bn ($7.1m) resulting in a 75% drop in third quarter profit. Despite the challenges, the company’s nine months earnings grew 19.31% to N24bn ($66m), from N20bn ($55m) in the previous year. NB noted that a continued focus on in

Heineken Nine months sales boosted by emerging markets

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Amsterdam-based Heineken N.V. reported its nine months results to the end of September on Wednesday, with revenue climbing 2.5%, driven by growth in all regions except Europe and the United States. The company said that beer volume grew 3.4%, driven by growths in Brazil, South Africa, Russia and Mexico. Net profit for the period rose 19.94% to €1.49bn ($1.75bn) compared to €1.239bn recorded in the same period last year when the company had to take an asset impairment charge of €233m in the Democratic Republic of Congo (DRC). Regionally, Africa, Middle East & Eastern Europe saw 8.8% volume growth, driven by double-digit volume gains in South Africa and Ethiopia, which offset declines of mid-single digit in Nigeria. Heineken said that underlying trading conditions remain difficult in Nigeria

Coca-Cola to spend $90m in Kenya to broaden product offerings

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The Coca-Cola Company (TCCC) plans to invest up to $90-million in Kenya over the three years through 2018 to increase its product offerings in the region’s biggest economy, the soft drinks maker said on Tuesday. Coca-Cola, which is the leader in the Kenyan soda market with brands like Coke and Fanta, has committed to invest $17-billion in Africa as a whole since 2014, double what was invested in the continent a decade before, the company said. The group, which faces growing competition in Kenya from other soft drinks producers like SABMiller and PepsiCo, said on Tuesday it will produce a wider range of soft drinks in the country from 2018 but did not give details. “It brings the total investment by The Coca-Cola Company in Kenya, between 2016 and 2018, to $90-million,” Coca-Cola said in a

Reps, agency heads, NBC disagree on additives in soft drinks

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The National Agency for Food and Drug Administration and Control (NAFDAC), said on Monday that it does not have the capacity to carry out tests on all foods and drinks produced or imported into the country in order to certify them healthy for human consumption before their release into the market. The agency also said that some additives and preservatives such as benzoic acid, sunset yellow and others, used in drinks produced or imported into the country were safe for human consumption. The agency made the confirmations on the first day of a public hearing by an ad hoc committee of the Federal House of Representatives looking into allegations of harmful additives found in soft drinks sold in the country. The committee’s work was prompted by the introduction of a motion by a member, Hon Rot