Guinness Nigeria Plc, said it plans to broaden its participation in the value segment of the beer market as part of its strategy to return to profitability. The maker of Guinness Extra Stout made this known in a rights Issue prospectus it released to shareholders in July. The company is seeking to raise N39.7bn ($109m) to enable it optimize its capital structure and reduce outstanding debt. The firm expects subscription to the rights issue and payment of debt obligation will be completed by the fourth quarter of 2017. The brewer has seen its financial performance decline over the last year, with a N2 billion net loss in fiscal 2016 and a further N4.7bn loss for the six months ended 31 December 2016. To return to profitability, the firm said it has increased local sourcing of raw materials ...
Chellarams Plc, said on Friday that revenue for its combined packaged dairy business known as FMCG and its bulk milk ingredients business fell 44.5% to N4.5bn for the full-year ended 31 March, down from N8.1bn in the previous year. The FMCG business alone which includes packaged Oldenburger, Regal and Real milk brands, as well as its Real Active malted food drink declined 39% to N3.8bn. The firm recorded N6.3bn in sales in 2016. The ingredient business which includes bulk branded milk sales to other manufacturers and processors fared worse with sales falling 63% to N693m from N1.88bn. Chellarams which is a diversified conglomerate involved in the importation and sale of dairy goods, industrial chemicals and turnkey equipment for the foam and mattress industry announced in late June that i
Moët Hennessy, the wines & spirits arm of French luxury goods maker Louis Vuitton Moët Hennessy (LVMH) reported 12% revenue growth in the first-half of the year ended June 30. Sales rose to €2.3bn from €2bn in the previous year, driven by volume increase in the United States and a robust upward momentum in China. Europe also had a strong start to the year, the company said. Champagne volumes grew 8%, with Moët and Chandon performing well in the U.S. and China. Cognac volumes rose 16%, from €39.4m to €45.7m, with the company maintaining market leadership across all of its product qualities. Glenmorangie and Ardberg continued to pursue their expansion plans with their whiskies, while Belvedere continued to grow internationally and reinforcing its position at nightlife venues. Profit for the
Beta Glass Plc, on Friday reported sales of N8.8bn for the first six months of 2017, a 13% increase from the previous year’s revenue of N7.8bn. The company which makes glass bottles and metal crowns for the beverage industry and others said that operating profit rose 212% to N1.6bn, helped by lower cost of sales which grew marginally by 1.49% to N6.7bn, from N6.6bn. Beta Glass said it gained N536m in net finance income. Net profit for the six months to the end of June fell1.28% to N1.43bn compared to N1.45bn in the previous year. Beta Glass Plc is a manufacturer of glass bottles, metal crowns and containers for the soft drinks, breweries, wine and spirits and others. It has manufacturing plants in Agbara, Ogun State and in Ughelli, Delta state and also exports its products to other African
Seven-Up Bottling Company Plc (“SBC”), the bottler of PepsiCo brands of soft drinks in the country, on Friday reported a net loss of N2.5bn for the first quarter of its 2017/2018 financial year (Apr – Jun) despite recording nearly 20% sales growth of N31bn from N27bn in the previous year. The loss adds to the company’s woes which had reported a N10.7bn loss in June for the 2016/2017 financial year. The company cited skyrocketing net finance cost as the reason for the first quarter loss. Finance charges rose a record 85% to N1.8bn, from N961m in the same period a year ago. The firm has seen its fortunes erode due to higher input costs, driven by foreign currency headwinds which have made cost of imported raw materials expensive. Naira devaluation and inflation also weighed on the company’s
International Breweries Plc reported a profit decline of 18% for the first quarter of 2017/2018 financial year despite seeing a record 37% surge in sales to N9.4bn, from N6.9bn. The company which makes Trophy Lager and Betamalt said that profit fell to N1.4bn, from N1.7bn in 2016. The brewer which is owned by beer giant AB InBev blamed high input costs for the drop in profit, driven by double digit inflation rate and high foreign exchange rates. Cost of sales rose 48% to N5bn, from N3.4bn. The firm said that operating income grew 37% to N2.3bn in the three months to the end of June while net finance cost declined 73.2% to N772m from N2.9bn. International Breweries announced in early June that it was exploring merging with Intafact Beverages Limited and Pabod Breweries Limited,...
Heineken N.V. on Monday reported a 49% profit growth in half-year, helped by its new zero-alcohol beer introduced in Europe in May and a warmer weather in Europe. The company said that half-year profit to the end of June rose to €871m ($1.02bn), from €586m in the previous year. “We delivered strong results in the half-year, with all four regions contributing positively to organic growth in volume, revenue and operating profit,” CEO Jean-Francois van Boxmeer said. Heineken launched an alcohol-free version of its namesake brand in Europe in May, and the firm said the results “already looks promising”. Brewers earn higher profit margins from non-alcoholic beer because they are exempt from excise tax and also sell at a premium. The company said that beer volumes in France, Italy, Spain and Por
Nestle Nigeria Plc, reported a nearly 3000% increase in profits for the first-half of 2017. Net profit rose to N16.5bn from N535m in 2016. The company which makes products such as Milo cocoa drink and Nescafe coffee, among others said that profit was boosted by a 54% surge in revenue to N121.9bn, from N80bn in the previous year. Net income also benefited from price increases taken in 2016 which carried over to the second quarter and lower finance charge which dropped 84% in the period to N2.2bn, from N14bn in 2016, thanks to an improving economy and foreign exchange liquidity. Cost of sales grew 48% in the period, driven by double-digit inflation and a weakened Naira. Nestle remarked in the first quarter that the marked increase in revenue is a testament that the company’s brands still enj
Champion Breweries Plc, the Akwa Ibom-based brewer reported a 9% growth in net profit for the six months ended 30th June. The company’s net earnings rose to N86m from N79m in the previous year. In the three months to the end of June, profit soared 114% to 47m, from N22m. The profit rise came on the back of a 25% surge in sales in the six months to end of June as sales reached N2.3bn from N1.8bn in 2016. At the same time, cost of sales grew 33% reflecting higher input costs and inflation. However, the firm kept a lid on expenses as selling and administrative expenses stayed nearly the same from the previous year. Champion Breweries is majorly owned by Raysun Nigeria Limited, a wholly owned subsidiary of Heineken N.V. The brewery was first acquired by Heineken N.V. in 2010 from Sona Group an
Nigerian Breweries Plc, said on Friday that the benefits of the price increases it took in 2016 to mitigate the effects of skyrocketing inflation and foreign currency challenges continued into its first-half results. The company declared a 15% growth in revenue for the first six months of its financial year. Sales grew to N181bn, from N157bn from the previous year. However, higher input costs contributed to a 28% increase in overall cost and expenses, which were the result of double-digit inflation and a challenging operating environment. The brewer notes that its continued focus on productivity efficiencies as well as one-off ‘Other income’ and a lower net finance charge in the period boosted profits 24.4% to N23.8bn, from N19bn in 2016. NB warns that the operating environment remains cha