7-UP profits drop 48% in Q1 amid headwinds
7-UP Bottling Company on Friday reported a 48% slump in profits for the first quarter of 2016. Net income fell to N1bn, down from N2bn reported a year earlier.
The maker of Pepsi-Cola, Mirinda, Aquafina bottled water, among others was weighed by currency-driven headwinds, coupled with rising inflation and competition from other soft drinks manufacturers.
Despite the difficulties, Seven-Up grew revenue 15% to N27bn, up from N23bn in the previous year. Cost of sales rose 28% to N20bn, from N15bn resulting in a 12% decrease in gross profit.
Finance cost for the soft drinks maker jumped 27% to N961m, up from N760m.
Seven-Up bottles and markets PepsiCo brands in Nigeria such as Pepsi, 7-Up, Mirinda, Aquafina, among others.