Companies
Nigerian Bottling Company installs high-speed canning line at Ikeja Plant
The new canning line will allow NBC to meet up with increasing sales demand.
The Nigerian Bottling Company Ltd (NBC) has announced the successful installation of a new high-speed canning line at its Ikeja plant. This is in line with its business optimisation and transformation plans.
The Director, Public Affairs and Communications, NBC, Ekuma Eze, noted in a statement seen by Nairametrics that the move and the supporting capital investment are in line with the company’s commitment to continue investing in the country.
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“As a leading consumer packaged goods company, NBC is committed to supporting the Nigerian economy and its people. In addition, as our products continue to cater to a growing range of tastes, we seek to continue to offer our consumers a wider choice of healthier options, premium products and increasingly sustainable packaging.
“This is why we’ve made this significant investment into the installation of this new can manufacturing line at our Ikeja plant,” he said.
With this development, the company’s production capacity for canned products will increase significantly, while production time will be greatly reduced.
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This will in turn increase the availability of Coca-Cola can products, and the products will now come in modern sleek cans.
According to him, the new canning line will allow NBC meet up with increasing sales demand, and boost the company’s export capacity.
Eze also disclosed in the statement that the company has “plans in place to install additional bottling lines at the plant in 2021.”
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Backstory
As part of the company’s optimization plan, NBC also developed a Greenfield factory in Challawa plant, Kano State to scale up operations. The factory commenced operations in February.
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NBC commenced its business transformation and optimisation plan since 2015, and over the last five years, has invested “over 650 million euros in the expansion and extensive upgrade of its manufacturing plants in Asejire, Ikeja, Abuja, Owerri, Challawa, Maiduguri, Port Harcourt and Benin.”
Companies
COVID-19, VAT, FX scarcity adversely impacted our operations in 2020 – Nigerian Breweries boss says
NB Plc’s operations in 2020 were adversely impacted by the COVID-19 pandemic, VAT increase and FX devaluation.
The management of Nigeria’s leading brewer, Nigerian Breweries Plc has revealed that its operations in 2020 were adversely impacted by the COVID-19 pandemic, VAT increase, FX devaluation and scarcity of foreign exchange.
This statement was made by the Managing Director of Nigerian Breweries, Mr Jordi Borrut Bel, at the company’s pre-AGM media briefing for the financial year-end 2020, which held in Lagos this week.
He noted that the increase in the brewer’s cost in 2020 was due to the COVID-19 pandemic which disrupted the company’s operations, as well as the increase in VAT, devaluation and FX scarcity which has put pressure on input cost.
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The Nigerian Breweries boss explained further that the increase in cost could not be fully attributed to currency devaluation and foreign exchange scarcity.
He explained that the increase in costs of goods sold, as reported in its audited financial results, could also be linked to the increase in the volume of goods sold, as the company’s sales volume in 2020 increased by almost the same percentage as the cost of goods sold.
To deal with this challenge going forward, he revealed that the company is focused on the supply chain, and will continue to seek out ways to mitigate any of the price increases coming from FX scarcity.
READ: Brewery sector: A quarter to forget
The company’s profitability in question?
An analysis of the company’s result revealed that despite the 4.3% increase in net revenue from N323.00 billion recorded in 2019, to a total of N337.01 billion in 2020, the company’s profit declined significantly by 53.3% to N7.53 billion.
Speaking on this, Jordi Borrut in his statement at the press briefing noted that the brewer’s business performance in 2020 was quite impressive especially in the face of the COVID-19 pandemic and economic recession. Despite these challenges, the company maintained a strong and healthy balance sheet.
“There was a slight reduction in profitability but compared to the previous year, the business witnessed an improved growth in revenue. The significance of this is that the business became more stable and healthier,” he said.
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What you should know
- Nigerian breweries, being the largest brewer in the country, maintained its stance in terms of generating profits year-on-year. The company emerged as the only brewer to record a profit of N7.37 billion from its operations in 2020, 54.3% lower than 2019 figures (N16.1 billion).
- From this, the leading brewer was able to pay shareholders a total dividend of N7.5 billion, translating to a dividend of 94 kobos per share – a dividend payout in which exceeds 100%.
- While Guinness and International Breweries made a loss of N12.6 billion and N24.9 billion respectively, this reality impacted their ability to pay their shareholders dividends in 2020.
Business News
Highest paid Nigerian bank MD/CEOs of 2020
Bank MD/CEOs in Nigeria earned a combined N1.5 billion in salaries in 2020.
The banking sector, especially commercial banks, is one of the most profitable sectors of the Nigerian Economy churning out profits of close to a trillion in 2020 alone. They are also one of the highest employers of labours in the country employing over 93,000 Nigerians.
Sitting at the helm of affairs is the Chief Executive/Managing Director, the highest-ranking executive in the organization saddled with the responsibility of making the best corporate decisions, oversight of the execution of the organisation’s corporate strategies and most importantly increasing the shareholders’ return. The buck basically stops on their table.
Thus, these enormous responsibilities also come with a considerable executive compensation for their service making them ostensibly the highest-ranking staff of the bank.
READ: Jim Ovia: From a clerk to founder of Nigeria’s most profitable bank
In typical Nairametrics fashion, we bring to you a list of the highest-ranking bank CEOs for 2020 based on their executive compensation (exec comps). The bank MD/CEOs under our review earned over N1.5 billion in salaries in 2020.
The data was sourced from the published audited accounts of the bank and verified by Nairametrics Research.
