BUSINESS

AB InBev suffers credit rating downgrade from Moody’s as it struggles to pare down huge debt

BUSINESS
Anheuser-Busch InBev’s credit rating has been slashed to the lowest tier of investment-grade, according to Moody’s Investors Service, which warned that the company is struggling to reduce its $100bn debt load. The credit rating firm said it lowered the brewer’s Senior Unsecured debt ratings to Baa1 from A3, putting the company three levels away from junk rating, Moody’s said on Monday. Depreciating currencies in emerging-markets are to blame for the brewer’s woes as it has sapped profits from the beer giant, leaving the company’s debt five times earnings before interest, taxes, amortization and depreciation (ebitda), Moody’s said. AB InBev has the biggest debt load in the global food industry, according to the credit rating firm. “Deleveraging is behind original expectations due largely to

PZ Cussons issues low profit warning ahead of release of first-half results

BUSINESS
PZ Cussons Plc, the British maker of a wide range of consumer goods and parent company of PZ Cussons Nigeria Plc, issued a profit warning on Thursday ahead of the release of its half-year results in January for period ending 30th November, 2018. While its business in Europe and Asia have seen continued good performance as a result of product innovation and distribution expansion, the company said that its African business remains challenging due in part to the economic situation in Nigeria. The company noted that consumer disposable income in Nigeria remained weak ahead of the election scheduled for February 2019. There have also been cost challenges from a further 10% weakening of the naira against the US dollar in the period and additional transport costs from significant disruptions bei...

Guinness Nigeria outlines strategy for growth

BUSINESS
Guinness Nigeria Plc said it has adopted a strategy to broaden its portfolio base to enable it serve a wider range of consumers both from price and segment point of view as it awaits a full recovery of the economy. In a wide ranging interview with FEYISAYO POPOOLA of the Punch Newspapers, the Managing Director/Chief Executive Officer of Guinness Nigeria Plc, Mr Baker Magunda, said that the economic recovery has been very fragile. It lists some of the challenges manufacturers still face. He said that inflation is still running at double digits, albeit at a lower rate than before. While the currency volatility has stabilized, he notes that it is still quite high. Also, there is strong competition in the market and consumers are price sensitive. The brewing and spirits industry took an excise...