Connect with us

Business

Coca-Cola Forecasts Full-year Profit Below Expectations

Published

on

Cocacola
  • Coca-Cola Forecasts Full-year Profit Below Expectations

Coca-Cola forecasts a full-year profit well below Wall Street expectations on Thursday as it reported a quarterly decline in volumes in North America, sending its shares down by three per cent.

The company’s financial statements, which were released to the London Stock Exchange on Thursday, showed that Coke raised prices of its beverages at the expense of falling demand.

It said food packaging companies were facing the brunt of rising freight and commodity costs and a dearth of truck drivers leading to squeezed margins and higher costs.

The company forecast full-year profit to be between 2.06 dollars and 2.10 dollars per share far below the average expectation of 2.23 dollars, blaming a stronger dollar.

Net income attributable to the company’s shareholders was $870m or 20 cents per share in the fourth quarter ended December 31, 2018, compared to a loss of $2.75bn or 65 cents per share, a year earlier, when the company took a tax-related charge.

Revenue fell by six per cent to $7.1bn in the fourth quarter, hurt by the refranchising of its low-margin bottling operations.

Analysts had estimated sales of $7.03bn dollars, according to Reuters data.

The company, in its financial results for the full year ended December 31, 2018, said its net sales revenue increased by six per cent on a foreign exchange-neutral basis.

It said volume growth accelerated to 4.2 per cent with growth in all segments, driven by sparkling beverages.

The volume of sales in Nigeria, however, decline amid the competitive environment.

There was a 20 basis-point reduction in comparable operating expenses as a percentage of revenue and its free cash flow stood at €370m.

The board of directors proposed a €0.57 dividend per share, which is a 5.6 per cent increase on the 2017 dividend.

The Chief Executive Officer, Coca-Cola HBC AG, Zoran Bogdanovic, said, “In 2018, we delivered another very good performance with revenue growth above our target range and another step up in margins.

“Strong volume growth in all our segments was helped by a record number of new product launches, while price/mix improved for the eighth consecutive year. This growth supported margin progress, which we delivered while increasing our investment in marketing.”

Bogdanovic said the company’s sharp focus on cost efficiencies continued while they invested in the business for growth.

According to him, the shape of the business, capabilities and commitment of the people and the company’s overall commercial proposition gives the confidence in the ability to continue to grow revenues and margins.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Appointments

Siemens Energy Nigeria Appoints Seun Suleiman as Managing Director

Published

on

siemens

Seun Suleiman is the New Managing Director of Siemens Energy Nigeria

Mr. Seun Suleiman is the new managing director of Siemens Energy Nigeria, the company announced on Wednesday.

According to the statement released by the energy company, Suleiman will be responsible for the entire management of operations and decisions on business policies and corporate strategy.

Commenting on his appointment, Suleiman said, “It is an absolute honor to lead the business for Siemens Energy Nigeria and I look forward to delivering on the brand’s promise of excellence.

Suleiman joined Siemens Energy in 2014, bringing over 15 years’ experience and deep expertise in the private sector across Europe and West Africa.

The statement said, “He is an accomplished business strategist and success-driven leader with strong business acumen. Suleiman has also been a core member of the executive management team at Siemens Energy serving in roles as Sales Director West Africa – Service Distributed Generation Oil & Gas and Vice President Service & Digital.

“Prior to this, he also held various functional and managerial positions with ABB Ltd UK, ABBNG Nigeria, Schneider Electric Nigeria and Dresser-Rand Nigeria Ltd.

It added that Suleiman was experienced in establishing operational excellence with specific competence in the power, oil and gas sectors.

Continue Reading

Business

FG Reopens Osubi Airport Warri for Daylight Operations

Published

on

muritala-muhammed-airport

FG Reopens Osubi Airport Warri for Daylight Operations

The Federal Government on Monday said the Osubi Airport in Warri has been reopened for daylight operations.

The Minister of Aviation, Hadi Siriki, disclosed this in a tweet.

The airport was closed in February 2020 over mismanagement and debt allegation involving aviation service providers and airport management.

However, Oberuakpefe Afe, a lawmaker representing Okpe/Sapeie/vaie federal constituency, recently moved a motion for the Federal Government through the ministry of aviation and relevant authorities to reopen the airport for flight operations.

On Monday, Hadi Siriki said “I have just approved the reopening of Osubi Airport Warri, for daylight operations in VFR conditions, subject to all procedures, practices and protocols, including COVID-19, strictly being observed. There will not be need for local approvals henceforth.

Continue Reading

Business

Nigerian Brand, JR Farms Acquires 11% Stake in Rwandan Firm

Published

on

Agric

Nigerian Brand, JR Farms Acquires 11% Stake in Rwandan Firm

JR Firms, an agribusiness firm with headquarters in Nigeria, has announced partnership with Sanit Wing Rwanda through the acquisition of 11 per cent stake in the company.

The CEO of the company, Mr Rotimi Olawale, explained in a statement that the partnership was in furtherance of its goals to ensure food security, create decent jobs and raise the next generation of agrarian leaders in Africa.

The stake was acquired through Green Agribusiness Fund, an initiative of JR Farms designed to invest in youth-led agribusinesses across Africa.

Sanit Wing Rwanda is an agro-processing company that processes avocado oil and cosmetics that are natural, quality, affordable, reliable and viable.

The vision of the company is to become the leading producers of best quality avocado and avocado by-products in Africa by creating value across the avocado value chain.

With focus on bringing together over 20,000 professional Avocado farmers on board and planting of three million avocado trees by 2025 through contract farming, the company currently works with One Acre Fund in supply of avocado to its processing facility.

The products of the company which include avocado oil, skin care (SANTAVO), hair cream and soap are being sold locally and exported to regional market in Kenya.

With the new partnership with JR Farms- the products of the company will enjoy more access to markets focusing on Africa and the European Union by leveraging on partnerships and trade windows available.

Aside funding, the partnership comes with project support in areas of market exposure, capacity building, exposure and other thematic support to grow the business over the next four years.

JR Farms has agribusiness operations in Nigeria, Rwanda, United States and Zambia respectively.

In Nigeria, the company deals in cassava value chain processing cassava to national staple “garri” which is consumed by over 80 million Nigerians on daily basis, while in Rwanda, it works in the coffee value chain with over 4,000 coffee farmers spread across the East Central African country.

Continue Reading

Trending