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Company Profile

Focus: This company makes billions manufacturing the bottles for your drinks

Every time you sip from a bottle of cold soft drink or wine, do you ever wonder where the bottle comes from?

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Beta Glass Plc

Every time you sip from a bottle of cold soft drink or wine, do you ever wonder where the bottle comes from? Let’s agree this is something we seldom do. After all, the interest is in the drink itself and not the container. Moreover, it is easy to assume that drinks manufacturers also make their own bottles. But the truth is that there are companies whose preoccupation is all about manufacturing the bottles which contain the drinks you take. In Nigeria, one of them is Beta Glass Plc. Ironically, this company’s products are used daily by Nigerians, many of whom do not even know of its existence.

As is the tradition on Nairametrics’ weekly company focus, we will be letting you in on everything you need to know about this NSE-listed company. And just in case you already know about the company, then get to know more about its business model, its products and services, its ownership structure, board members, competitors, financial standing, investment opportunities and more.

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A corporate overview of Beta Glass Plc: history, business model, share price, market cap  

Incorporated on June 2nd, 1974, Beta Glass Plc is a Nigerian industrial goods company whose business model entails the production and merchandising of glassware. Specifically, the company produces glass bottles for wines, soda drinks, and hard liquor. It also makes glass containers that are used for the packaging of cosmetics and pharmaceutical products.

The company is headquartered in Lagos but has production plants in the Agbara industrial hub of Ogun State, as well as Ughelli which is located in the Southern Nigerian state of Delta.

According to the Nigerian Stock Exchange (NSE), Beta Glass Plc has a market capitalisation of N34.1 billion. Its shares were listed on main board of the NSE on the 2nd of July 1986, exactly twelve years after its incorporation. Important to note is the fact that Beta Glass’ share price has been one of the best performing on the Nigerian bourse over the past five years, having risen from N19 in 2014 to N68 today. Now, how nice is that!

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About the company’s ownership structure

Beta Glass Plc is a subsidiary of Frigoglass Industries Nigeria Limited, which holds a 61.9% stake in Beta. Frigoglass is itself a subsidiary of the Greek company, Frigoglass S.A.I.C, which is a major player in the global Ice Cold Merchandisers (ICM) market. Consequently, it is the Athens-based Frigoglass S.A.I.C that owns the controlling share in Nigeria’s Beta Glass Plc.

Other notable shareholders include:

  1. Frigoinvest Holdings B. V: 8.17%
  2. Stanbic IBTC Nominees Nigeria Limited: 7.91%
  3. Delta State Ministry of Finance Incorporated: 4.45%

The company’s target market

As stated earlier, the 44-year old company manufactures glass bottles and other containers for brewers, soft drink makers, pharmaceutical companies, and cosmetics manufacturers. Therefore, examples of companies that it targets include the likes of Guinness Nigeria Plc, Nigerian Breweries, SevenUp Bottling Company, and International Breweries.

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Due to the fact that Beta Glass Plc manufactures an uncountable number of bottles, it also sells its industrial goods to breweries outside Nigeria, exporting mainly to West African countries. These include neighbouring Ghana, Cameroun, Benin Republic, Togo, Guinea, Liberia and Sierra Leone. Others are Gambia, Gabon, Burkina Faso, Mauritius, Senegal, and Rwanda.

A look at the company’s board of directors

According to information contained in Beta Glass’ full-year 2017 financial report, there are currently nine members on the company’s board of directors. One of them is the Chief Executive Officer, Mr Darren Bennett-Voci. Mr Bennett-Voci became the company’s CEO in early 2016.

The Briton is said to have nearly twenty years of experience in the global glass container business. He joined Frigoglass Group in June 2012 as a Commercial Director of Glass and has since served several executive positions in the company. He is an alumnus of Collège d’Europe in Warsaw, where he bagged a Master’s in Advanced European Studies.

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Other members of the company’s board include:

  • Mr Abimbola Ogunbanjo
  • Dr Zulikat Wuraola Abimbola
  • Ms Olufunmilayo Adefope
  • Chief Chris Avielele
  • Haralambos (Harry) G David
  • Nikolaos Mamoulis
  • John Mastoroudes
  • Oluwaseun Abimisola

The company’s competition

At the moment, Beta Glass Plc’s main competition stems from companies that are specialised in the manufacturing of pet bottles. This is because the beverage industry has over time, refocused its packaging strategy, with growing use of plastic bottles as against regular glass bottles. What this means is that Beta Glass Plc has to compete with pet bottle manufacturers such as Geeta Plastic Products Limited, Poly Products Nigeria Limited, and others. In the meantime, the company still competes with other smaller bottle makers such as Glass Force Limited.

Pet bottles are fast becoming a serious source of competition for the likes of Beta Glass Plc.

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A look at the company’s recent financial performance 

Beta Glass Plc recently released its third quarter financial result which showed a considerable improvement, compared to an equally positive result recorded in Q3 2017. According to the unaudited result, revenue increased from N14.8 billion in Q3 2017 to N19.1 billion in Q3 2018. In the same vein, profit after tax for the 2018 third quarter period stood at N3.5 billion, compared to N2.2 billion during the same period last year.

Note that this company has consistently recorded impressive growth over the past five years. Revenue grew from N14 billion to N22 billion between 2013 and 2017, even as profit after tax grew from N1.4 billion to N4.1 billion during the same period.

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In conclusion, it is expected that by the end of this year, Beta Glass Plc will outperform its 2017 financials. This is bearing in mind its performance so far this year. And what is even better is that fact that shareholders can be guaranteed of a dividend payment, seeing as the company has been consistent with that over the years.

Patricia

Emmanuel covers the financial services sector for Nairametrics. Do you have a scoop for him? Well then, contact him via his email- [email protected]

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Business News

Access Bank Plc reports profit of N40.9 billion for Q1 2020

Access Bank Plc recorded a profit after tax of N40.9 billion in the first quarter period ended March 31st, 2020, according to the company’s latest earnings report which was released earlier this afternoon.

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Access Bank 

Access Bank Plc recorded a profit after tax of N40.9 billion in the first quarter period ended March 31st, 2020. This is according to the company’s financial statement for Q1 2020, which was released earlier this afternoon. Other key details about the company’s Q1 financial performance can be seen below.

Net Interest Income: Access Bank’s net interest income for the period under review stood at N72.2 billion. This indicates a 27% increase compared to N56.8 billion that was recorded in Q1 2019.

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Personnel and Operating Expenses: In Q1 2020, the tier-1 bank incurred a total cost of N19.6 billion in personnel expenses. This shows a 53.5% jump compared to N12.8 billion in Q1 2019. In the same vein, other operating expenses also jumped sharply to N63.5 billion, marking a 69.8% increase when compared to N37.4 in Q1 2019.

READ ALSO: Sterling Bank attempted to ‘scam’ its customers; but it’s a drill

Profit before tax & profit after tax: Access Bank’s profit before tax for Q1 2020 stood at N46.2 billion. This is 2.6% more than N45.1 billion reported in Q1 2019. On the other hand, profit after tax decreased slightly by 0.53% to N40.9, down from N41.1 billion.

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Note that Access Bank’s earnings per share (basic) for the period decreased to 121 kobo as against 139 kobo. Diluted earnings per share also decreased to 119 kobo in Q1 2020 as against 137 kobo in Q1 2019.

READ ALSO: World Bank says remittances to Nigeria, other LMICs will drop by 20% in 2020

You may download the full report right here.

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Patricia
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Business News

SumoBank rebrands to SumoTrust, introduces bank account numbers

An online savings platform, SumoBank has rebranded as it metamorphosed to SumoTrust to continue the race of digital savings App in Nigeria.

The firm, launched its operation as a digital savings and investment platform, has grown from 0 to serving about 4000 customers.

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SumoBank rebrands to SumoTrust, introduces bank account numbers

An online savings platform, SumoBank has rebranded as it metamorphosed to SumoTrust to continue the race of digital savings App in Nigeria.

The firm launched its operation as digital savings and investment platform, and has grown from 0 to serving about 4000 customers.

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The development was announced on the Sumobank blog on the 27th of December 2019 by the Chief Executive Officer, Igwe Chrisent.

[READ ALSO: Budget: FG completes only 31.7% of constituency projects(Opens in a new browser tab)]

“In 6 months, we have grown from 0 to serving almost 4000 customers and to serve you better; we decided to carry out a product-service survey which will help us to do more.

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“Based on the feedback we got from our ‘Esteemed users’ on our Product and service survey; we’re happy to announce that our vision just got bigger and we’ve set out to give you the very best of platform for Savings, Investment, learning and more.

“Because our vision got broader and clearer, it is important to know that having ‘Bank’ attached to our name will not serve the product updates which will be effected in the coming months/years, so we decided to pick a new name.”

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[READ MORE: Mr Biggs rebrands, launches new model restaurants across Nigeria)

Highlights of rebranding: The Change of name from SumoBank to SumoTrust also came with some updates on the SumoTrust savings App which include:

  • Addition of NUBAN ACCOUNT numbers which allow users to have their unique bank account numbers for transactions (deposits) in their SumoTrust account.
  • Group Saving feature which allows users to go on a savings mission with a group of friends, family, associations, challenges, etc to reach a savings goal. See image below:
  • The article also mentioned that their Learn feature (Motute) which will enable you to teach or learn anything from anywhere in the world will be ready and announced in a few months and will be released on Entrepreneur Platform. This means the Sumotrust’s partnership with Entrepreneur Platform will enable you to access the company’s course for free and get third party course at a discounted rate.

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From this, it is clear Sumobank (SumoTrust) is preparing to become another big company to come out of Nigeria or there’s something else we don’t know yet, whichever it is, Both names sound alike and non will be forgotten easily since they are all ‘Sumo’.

Patricia
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Business News

Cornerstone Insurance in consolidation talk with two underwriting firms

Cornerstone Insurance Plc is planning to consolidate with some insurance companies ahead of the recapitalization deadline set by NAICOM. 

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cornerstone, Cornerstone Insurance in consolidation talk with two underwriting firms ahead of recapitalisation , Cornerstone Insurance Plc announces resolution of its bloard meeting

Cornerstone Insurance Plc is in merger talks with some insurance companies ahead of the recapitalization deadline set by the National Insurance Commission (NAICOM) for the insurance sector.

The move is to strengthen its capital base. The Group Managing director of the company, Ganiyu Musa, said consolidation with other market players was more efficient compared to just seeking fundraising.

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NAICOM, Recapitalisation: 44 firms get NAICOM’s nod , NAICOM boss makes case for recapitalisation, insists the exercise will solidify insurance sector  

Although Musa didn’t reveal the names of the insurance companies negotiating with Cornerstone Insurance, he said consolidation would place the firm in a stronger position, boost expertise, improve technical capacity and even strengthen the capital base of Cornerstone Insurance.

While the consolidation is expected to aid the company’s recapitalization process, Musa said the Cornerstone Insurance had already met the recapitalization request by NAICOM.

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According to him, the company has exceeded the N18 billion new minimum capital required by the insurance market regulator. Musa said the sale of its property and head office boosted the liquidity of the company, placing its finances in a better footing.

“The sale of our new property along Lekki axis has further increased the liquidity of the company to meet and surpass expectations. The company would have loved to keep the property for the long run, but we were challenged with the fact that real estate investment is not admissible in the ongoing recapitalisation.

“This necessitated the sale of the building for a handsome amount that covers the cost of the building project and still left with profit. At present, we are in a stronger financial position to scale through the exercise as our balance sheet is stronger and healthy,” he said. 

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[READ MORE: NAICOM boss makes case for recapitalisation, insists exercise will build a stronger insurance sector)

He added that, “The company came out from its loss position of N1.7 billion in 2017 to N1.8 billion profit in 2018, even as the 2019 profit outlook is showing sign of higher profit from that of the previous year, judging from its 2019 third-quarter report.”

While the insurance companies don’t have a choice but meet the deadline through fundraising and consolidation, the chairman of Mutual Benefit Assurance, Akin Ogunbiyi, said the company was against the planned recapitalisation scheme by NAICOM.

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The company has said it could survive the wave of the recapitalisation, it said its concern was for other players who might become victims to the plan. Mutual Benefit also condemned the handling of foreign acquisitions in the Nigerian market.

Patricia
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