Tag Archives: Currency headwinds

Pepsico reports 1% profit rise in Q2 2016 amid currency headwinds

PepsiCo, the soft drink giant behind such brands as Pepsi, 7-Up, Mountain Dew, among others said on Thursday that revenue for the second quarter of 2016 declined 3.3% to $15.4bn, from $15.92 billion, weighed down by a stronger dollar, the de-consolidation of its Venezuelan operations and currency-driven headwinds in Latin America (32%), Europe and Sub-Saharan Africa (4%). PepsiCo said that its Asia, Middle East and North America (AMENA) division saw a 3% rise in revenue.

SABMiller’s profit down 18% in full-year on FX write-downs, merger costs

SABMiller Plc, the global behemoth in the midst of being acquired by its bigger rival, Anheuser-Busch InBev (AB InBev), said on Wednesday that its full-year net profit ending March 31 2016 fell 18% due to impairment charges related to closure of its business in South Sudan and a partial pull-back of its activities in Angola ($561m). Both countries have suffered from devaluation of their currencies, making obtaining foreign currencies difficult for businesses.

Diageo set to increase use of locally sourced raw materials in Nigeria to head-off headwinds

Diageo said it will increase its use of locally sourced raw materials in Nigeria in a bid to tackle current macro-economic challenges in the country.

Speaking to analyst during a conference call late last week, Diageo’s Africa President, John O’Keeffe, said he was “mindful of the short-term uncertainty” in Nigeria, which could lead to currency devaluation. Nigeria is facing one of its worst economic crisis in decades, with falling oil prices impacting everything from government revenue shortfalls to inflationary pressures and currency depreciation. The government has so far resisted pressures to devalue the naira.

Heineken looks-on with keen interest amid currency turmoil in Nigeria

Heineken is observing with keen interest the Naira headwinds, which makes it difficult for the company to take money out of the country.

A spokesperson for Heineken, said that currency repatriation in Nigeria, the company’s second biggest by profit contribution, was getting “more difficult but is not impossible.”