Connect with us
nairametrics

Consumer Goods

Floods disrupt operations in Flour Mills’ Sugar Estate 

Heavy floods at Flour Mills’ Sunti Golden Sugar Estate has disrupted its operations.

Published

on

Flour Mills of Nigeria Plc, 2018 FY: Flour Mills’ shareholders unanimously endorse N4.92 billion dividend , FMN redeems N1 billion pledge to CACOVID relief fund, donates $1.5 million worth of medical supplies

Sunti Golden Sugar Estate (SGSE), owned by Flour Mills, has suffered some disruptions to its operations as floodwater breached the Sugar Estate. 

This information was gathered by Nairametrics from a notification sent to the Nigerian Stock Exchange and signed by the Company’s Secretary, Umolu Joseph A. O.  

The largest miller by market capitalization, explains that the floods were as a result of the long rainfalls recorded recently at the northern and central parts of the Niger basin, as the floods were triggered by severe downpours at the Sokoto Rima basin, and as a consequence, the Kainji and Jeba dams witnessed an upsurge in the lateral flow of water. 

READ: Julius Berger to diversify into Agro-processing industry

The Management stated that SGSE has suffered some disruptions to operations, as the resulting high inflows in the downstream Niger River caused a breach to the extensive and properly designed dyke systems at Sunti Golden Sugar Estates (SGSE). 

GTBank 728 x 90

This development is expected to delay the expansion project, geared towards increasing the area under cultivation to 4,000 hectares by mid-2021. 

The Miller assures stakeholders, that there is no immediate threat to the earlier indicated earnings projections of FMN, as immediate safety protocols have been instituted to safeguard employees, property and equipment. Hence the breach is not foreseen to impact the overall performance of the Group. 

READ: DeFi crypto market value gains over 1000% from June

GTBank 728 x 90

The company informs investors and other key stakeholders that the actual state of damage to the current sugarcane crop at Sunti, can only truly be assessed once the floodwater subsides, and ensures that it will release further details in due course as the need arises. 

Shares of Flour Mills at the end of the trading session on Friday closed at N21.50, and this is 6.70% higher than the market opening price for the day, 8.59% higher than the market opening price for the week, and 14.36% higher than the market opening price for the month. While the YTD gains stood at 9.14%. 

READ: Stock market drops below N12 trillion mark, investors lose N456 billion on Thursday

Flour Mills shares are currently trading in the overbought zones, going with the agreement of Technical Momentum  Indicators, like the William Percentage Range, the Relative Strength Index and its stochastic variant, as the shares of the company are driven by strong fundamentals. 

In like manners, the company shares currently trade at 21.15x earnings per share (EPS), and 0.57x book value per share (BVPS), with a Market capitalization of N81.628 billion.  

Jaiz bank ads

Fidelity ads
Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Consumer Goods

Olam International upsizes debt facility to $1.98 billion, to refinance its loans

The company announced that it has upsized its flagship $1.675 billion multi-tranche revolving credit facility.

Published

on

Olam International upsizes debt facility to $1.98 billion, to refinance its loans

Leading food and agri-business company, Olam International, has announced that it has upsized its flagship debt facility of $1.675 billion by $300 million, to $1.975 billion. The debt facility will be disbursed to refinance existing loans of Olam and its subsidiaries.

This information was disclosed by the company in a press release yesterday, which was seen by Nairametrics.

READ: CBN raises alarm over fake tweet posts on N50 billion COVID-19 fund

According to the information contained in the press release, the company announced that it has upsized its flagship $1.675 billion multi-tranche revolving credit facility that was secured on September 10, 2020, by an additional $300 million.

The upsized facility of $1.975 billion, which has Olam’s wholly-owned subsidiary, Olam Treasury Pte. Ltd. (“OTPL”) as a co-borrower, consists of three tranches – a 364-day revolving credit facility of $790 million, a 2-year revolving credit facility of $790 million and a 3-year revolving credit facility of $395 million.

GTBank 728 x 90

READ: CBN waives guarantor requirement for N50 billion COVID-19 loan applications

The Management of Olam emphasized that the proceeds from the credit facility provided by a total of 25 banks, will be deployed efficiently towards refinancing existing loans of Olam and its subsidiaries.

However, the debt facility will also help the company strengthen its balance sheet, and enable the leading agri-business group to execute its plans and strategy while supporting our customers, farmer-suppliers, and other stakeholders, as they navigate through the impact of COVID-19.

GTBank 728 x 90

READ: NIRSAL explains why it is not disbursing N50 billion CBN loan

In an earlier press release on September 10, 2020, Olam International confirmed that 21 lenders participated in the flagship debt facility of $1.675 billion.

Four new banks have now joined the facility – Bank of Baroda as a Senior Mandated Lead Arranger, Bank of China, Unicredit Bank AG as Mandated Lead Arrangers, and Westpac Banking Corporation as a Lead Arranger; taking the total lenders to 25 banks.

READ: UPDATE: Dangote announces impending sale of Dangote Flour Mills Plc to Olam

Recall, in a press release on June 18, 2020, Olam international said it secured a revolving sustainability-linked credit facility aggregating $250 million, which is linked to meeting key sustainability performance indicators, aligned with the three Purpose outcomes of the Company’s sustainability strategy. The KPIs will be tracked and reported by Olam’s Corporate Responsibility & Sustainability team, while Ernst & Young will perform procedures to independently assess the achievement of the KPIs.

Jaiz bank ads

However, the upsized facility of $1.975 billion and other facilities since 2018 which amount to $1.675 billion, brings the total consideration of the group’s credit facility to $3.65 billion.

Fidelity ads

Continue Reading

Consumer Goods

Guinness’ parent company expects alcohol sales to improve as restaurants and bars gradually reopen

Diageo Plc expects a sequential improvement in organic net sales and operating profit compared to the first half of fiscal 2020.

Published

on

Guinness’ parent company expects alcohol sales to improve as restaurants and bars gradually reopen

The parent company of Guinness Nigeria Plc, Diageo Plc disclosed that it expects sales in July to December to improve, compared to the first six months of the year as bars and restaurants reopen following coronavirus lockdowns.

This was disclosed by the CEO of Diageo Plc, Ivan Menezes, in a press release by the company today.

Ivan Menezes said that Diageo has made a good start to the fiscal year 2021, with sequential improvement in the Group’s performance across all regions, driven by strong execution, robust demand in the off-trade channel, and the gradual re-opening of the on-trade channel in most markets.

READ: Guinness Nigeria Plc changes CEO again, now four in 5 years!!!

However, as the pace of recovery from the COVID-19 pandemic, and easing of government restrictions varies by region and market, the CEO expressed optimism in the US business, as it is performing strongly ahead of expectations, reflecting resilient consumer demand, as the spirits category continues to gain share within the total beverage alcohol market.

GTBank 728 x 90

In Europe, off-trade demand remains robust, and the on-trade channel has largely re-opened with the easing of lockdown measures in most countries, although the risk of additional restrictions remains where infection rates are worsening.

READ ALSO: Nigerian consumers dispel Coca Cola’s fears as growth hits $3.76 billion

While speaking about the performance of Diageo’s subsidiaries operating outside of the U.S. and Europe, Mr. Menezes maintained a cautious stance; “the on-trade has also begun to re-open in Africa and other regions, and as such, we expect the pace of recovery in those markets to be more gradual, as travel retail continues to be severely impacted.”

GTBank 728 x 90

(READ MORE: FG to facilitate removal of tax on minimum wage, as NLC suspends strike)

Outlook for the first half of the fiscal year 2021

On the outlook for the first half of the fiscal year 2021, Diageo Plc expects a sequential improvement in organic net sales and operating profit, compared to the second half of fiscal 2020, but organic net sales and margin dilution in the first half of the fiscal year 2021, is expected to be lower than the first half of the fiscal year 2020.

Menezes noted that the resilience of the Group’s business and trade segment in the current challenging operating environment is really impressive. Though recovery is uncertain in the near-term, he is confident in the company’s strategy, coupled with its long-term fundamentals, as enabling factor to emerge stronger.

READ: Guinness Nigeria boss reveals factors pulling company’s profit

Diageo products are sold in more than 180 countries around the world, it is a global leader in beverage alcohol, with an outstanding collection of brands including Johnnie Walker, Crown Royal, JεB, Buchanan’s and Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray, and Guinness.

Jaiz bank ads

Diageo Overseas holdings limited, is the parent organization of Guinness Overseas Limited. Guinness Overseas Limited, as of 30 June 2020, owned 50.18% of the issued share capital of Guinness Nigeria Plc.

Fidelity ads

Continue Reading

Consumer Goods

Lagos State government seals warehouse repackaging expired curry powder

Following an anonymous tip, LASCOPA has sealed off a warehouse where expired curry powder was being packaged.

Published

on

Lagos state government seals a warehouse repackaging expired curry powder.

The Lagos State Consumer Protection Agency (LASCOPA), under the aegis of the Lagos State Government, has sealed a warehouse for repackaging unwholesome and expired curry powder.

This disclosure was made this morning in a press release to the general public, which was seen by Nairametrics, via the official website of Lagos State Government.

READ: Lagos seals 22 other buildings in Banana Island, Ikoyi axis over permits

Acting on an anonymous tip-off from a member of the public, the Special Monitoring Team of LASCOPA, led by its General Manager, Mrs. Kemi Olugbode, paid an unscheduled assessment visit to the warehouse, to verify the claim. The tip turned out to be genuine.

This decision is in line with the State Government’s core mandate of protecting consumers from unwholesome products. The warehouse which was sealed by LASCOPA, for repackaging unwholesome and expired curry powder with the name Chinchilli and Ducross for sale, was said to be owned by Canvest Nigeria Limited. The warehouse is located at Plot 4, Cocoa Industrial Road, Ogba, Ikeja.

GTBank 728 x 90

The General Manager, speaking after the exercise, said the enforcement team discovered thousands of expired products stored in cartons, while some were found in sacks that were ready to be repackaged for sale in the market.

(READ MORE: Lagos to remove illegal structures obstructing Lekki Regional Road project)

The Head of LASCOPA, emphasized that the staffs of the company involved in the fraudulent operation have been arrested. Olugbode disclosed that the property will remain sealed until the government commences prosecution of the owners of the warehouse, and all those involved in the illicit activity are apprehended.

GTBank 728 x 90

Mrs. Olugbode, also encouraged members of the public to support the present administration’s determination to rid Lagos of all illegal activities, by reporting those who are engaged in unwholesome activities that are detrimental to the health of residents.

Continue Reading
Advertisement
Advertisement
Advertisement
ikeja electric
Advertisement
Advertisement
Patricia
act markets
Advertisement
FCMB ads
Advertisement
IZIKJON
Advertisement
Fidelity ads
act markets
Advertisement
first bank
Advertisement
bitad
Advertisement
Stallion ads
Advertisement
financial calculator
Advertisement
deals book
Advertisement
app
Advertisement