Tag Archives: Inflation

Currency weakness, inflation push 7-Up to half-year loss

Soft drinks maker, 7-Up Bottling Company said on Monday that currency weakness related to the recent Naira devaluation led to higher cost of goods sold and higher selling and distribution expenses, resulting in a half-year loss . The bottler of Pepsi-Cola declared a net loss of N1.6bn.

Seven-Up said that sales grew 19% to N47bn despite the macroeconomic challenges. In the previous year, revenue was N40bn. However, a 26% jump in cost of sales to N38bn, from N28bn plus a 26% rise in selling and distribution expenses all weighed on the soft drink maker’s earnings.

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.

Seven-Up post 53% profit decline in full-year amid worsening economic environment, competition

Seven-Up Bottling Company Plc, said on Wednesday that net income for the fiscal-year ending March 31 2016 fell 53% to N3.34bn, from N7.12bn a year earlier.

The poor performance of the soft drink maker is attributable to the worsening economic environment in the country – low oil revenue, currency headwinds, inflation of 15.6% as of May 2016 compared to 9.2% a year earlier, which is the last time the company posted higher profits. Insurgency and terrorism in different parts of the country, competitive pressure, among others also weighed on the company’s profits.

Sugar shortages force Coca-Cola FEMSA to shut plant in Venezuela

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Coca-Cola FEMSA, the coke bottler in Venezuela said it was stopping production of sugar-sweetened beverages in the country due to shortage of sugar.

“Sugar suppliers in Venezuela have informed us that they will temporarily cease operations” Kerry Tressler, a spokeswoman for Coca-Cola, said in a released statement. “The company is talking with suppliers, government authorities and others to work on a solution.”