Monthly Archives: July 2017

Nestle Nigeria’s half-year profit boosted by revenue growth, lower finance cost

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.

Heineken’s profits soar on zero-alcohol beer, warm European weather

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.

Nigerian Breweries sustains momentum as half-year profit surge 24%

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 ($500m), from N157bn ($430m) from the previous year.

Champion Breweries returns to growth with 9% profit rise in half-year

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 ($237,500) from N79m ($218,000) 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 ($6.4m) from N1.8bn ($5m) 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.

Cadbury Nigeria slides to record N766m half-year loss

Cadbury Nigeria Plc, the bournvita maker on Wednesday reported a half-year loss of N766m for the period ended June 30. In the same period a year ago, the company recorded a profit of N147m.

Despite growth in revenue of 16.9%, rising cost of sales which grew 33% in the period to N13bn, from N9.8bn, driven by inflation and higher foreign exchange rates had an adverse impact on gross profit, and on net finance cost, leaping 348% to N274m.

Budweiser set to lock horns with Heineken, Guinness in Africa

Anheuser-Busch InBev CEO Carlos Brito said its Budweiser brand will triumph over Heineken and Guinness in Africa’s biggest beer markets.

Brito was speaking to analysts on Thursday, following AB InBev’s second quarter and half-year 2017 results.

He said that the big beer merger of last year which combined the markets and brands formerly owned by SABMiller with its own brands opened up new markets in Africa for its global brands – Budweiser, Stella Artois and Corona.

Productivity cost-savings, favourable currency tailwinds boost Diageo’s full-year results

London-based Diageo Plc, said on Thursday that it recorded £12.05bn ($15.83bn) in net sales for the full-year ended June 30, up 14.87% from the previous year’s £10.49bn.

“We have delivered consistent strong performance improvement across all regions and I am pleased with progress in our focus areas,” said Ivan Menezes, group CEO.

The maker of Johnnie Walker whisky and Smirnoff vodka attributes its good fortune to productivity gains, favourable currency tailwinds and broad-based revenue growth across its major markets.

AB InBev toasts strong Q2 and half-year results

Anheuser-Busch InBev hailed a strong first-half to 2017 as revenue grew 5% to $14bn in the three months to the end of June and 4.4% to $27bn in half-year.

The world’s largest brewer by sales credits its strong performance to a combination of benefits reaped from its merger with SABMiller last year and revenue management initiatives as well as premiumization. The company said it saved $335m from synergies in Q2 alone.

AB InBev said total beer volume grew 1%, with its own beer volumes up 2.1%, driven by growth in South Africa, Mexico and Australia despite continued struggles in the U.S. and Brazil, two of its largest markets.

Coca-Cola half-year revenue, profit fall on refranchising costs, currency headwinds

Coca-Cola on Wednesday reported a 16% drop in revenue for the second quarter of 2017, to $9.7bn, and a half-year sales decline of 14% to $18.8bn.

The Atlanta-based company blamed the drop on refranchising costs of its North American bottling operations and currency headwinds. The company said that it took a charge of $653m related to its North American bottling operations.

However, despite the drawbacks, analysts hailed the results noting that it was higher than expected. The company’s new CEO James Quincey said that the results were in line with their expectations of turning the company into a total beverage firm.

Guinness Nigeria opens subscription for N39.7bn rights issue

Brewing giant Guinness Nigeria Plc, on Tuesday unveiled application for subscription of its proposed N39.7bn ($126m) rights issue.

The company’s officials were at the Nigerian Stock Exchange (NSE) to present a detailed breakdown of the offer of 684.5m ordinary shares to Guinness Nigeria current shareholders to raise N39.7bn.