Beta Glass Q1 2016 net profit drop 85%
Beta Glass Plc, maker of glass bottles for bottling companies and brewers said its revenue declined by 24% to N3 billion, from N4 billion in the same period a year ago.
Beta Glass core glass making business is in decline as more beverage companies and brewers switch to cans and plastics packaging.
Gross profit for the glass maker also sank 53% to N398m, from N852m for the same period a year ago.
Beta Glass incurred a higher selling and administrative expense for the quarter as its costs rose 116% to N42m, from N20m a year ago.
Foreign exchange woes added to the glass maker’s troubles as it racked up 30% more charges (N18m) than it did a year earlier (N14m).
Pre-tax profit fell 84% to N92m, from N594m in the same period a year ago.
Frigoglass, the majority shareholder of Beta Glass announced in late-February that it was pulling out of a deal to sell its 70% stake (valued at $225m) in Beta Glass Plc in what it described as a failure of the prospective buyer to secure the necessary financing for the deal. The prospective buyer was GZ Industries Limited based in Agbara, Ogun State, the largest beverage can producer in West Africa with operations in Nigeria, and soon to open new plants in Kenya and South Africa.
Beta Glass net income for Q1 2016 fell 85% to N62 million from N426 million in 2015.