Seven-Up losses widen at year end

Seven-Up Bottling Company Plc, on Friday reported a net loss of N10.7bn for the full-year ended 31 March 2017, down from the N3.3bn profit recorded a year earlier.

The company blames higher input costs, driven by inflation and unrealized foreign exchange loss for the poor performance. Cost of sales in the period rose 57% to N95bn, up from N60.6bn.

Continued poor liquidity in the foreign exchange market, albeit with a slight improvement resulted in a weak naira which had a transactional impact through higher costs. While the company posted an impressive 26.4% growth in the year to N108.2bn, the higher cost of sales caused gross profit to decline 48.3% to N12.9bn, down from N25bn in the previous year.

Net finance cost rose 25.5% in the period to N4bn, from N3.2bn, driven by high input costs, (in part driven by FX) and the FX impact on financing costs.

Seven-Up Bottling Company is the sole bottler and marketer of PepsiCo brands in Nigeria which includes Pepsi cola, 7-Up, Mirinda, and Aquafina bottled water, among others.

You may also like:

Leave a Reply

Your email address will not be published. Required fields are marked *