Company News in Brief
Coca-Cola plans to invest $1 billion in Nigeria operations, presidency saysCoca-Cola plans to invest $1 billion in its Nigeria operations over the next five years, the country's presidency said after a meeting between President Bola Tinubu and senior executives of the soft drinks maker on Thursday.
Tinubu met John Murphy, president and chief financial officer of Coca-Cola, Zoran Bogdanovic, CEO of Coca-Cola - one of Coca-Cola's many bottlers worldwide - and several other company officials as he seeks to attract investment into the economy.
Bogdanovic told Tinubu that Coca-Cola had since 2013 invested $1.5 billion in Nigeria to expand its production capacity, improve its supply chain and on training and development, the Nigerian presidency said in a statement.
"I am very pleased to announce that, with a predictable and enabling environment in place, we plan to invest an additional $1 billion over the next five years," Bogdanovic was quoted as saying.
The investment announcement comes after Tinubu's government saw several multinationals like Procter & Gamble, GSK Plc and Bayer AG leave the country or appoint third parties to distribute their products due to foreign exchange shortages.
Tinubu, in office since May last year, said his government wanted to create an environment open to businesses.
"We are building a financial system where you can invest, re-invest, and repatriate all your dividends. I have a firm belief in that," he said.
Nigeria, with a population of more than 200 million is seen as a potential market for many global brands, but forex woes, red tape and policy inconsistency discourages some investors.
Bottler Coca-Cola HBC in April said its operating profit would rise this year, supported by strong demand for its coffee, energy and sparkling drinks even as prices were hiked to keep up with high costs and currency devaluation in countries like Egypt and Nigeria.
-REUTERS-
Starlink launches in Yemen
Tech billionaire Elon Musk's satellite internet service Starlink has launched in Yemen, provoking the anger of Iran-backed Houthi rebels in the country shattered by civil war. The company - run by the world's richest person - announced its arrival in Yemen, one of the world's least developed countries, in a post on social media platform X which is also owned by the US-based tycoon. Starlink's network of low Earth orbit satellites can provide internet to remote locations or areas that have had normal communications infrastructure disabled. "Starlink is now available in Yemen!" the post said on Wednesday. Yemen is the first country in the Middle East to receive the service, which requires a dish and a router.
-REUTERS-
Remgro headline earnings fall by a fifth
Remgro, the investment group chaired by Johann Rupert, reported on Thursday that full-year headline earnings fell by a fifth following a poor performance from its Heineken Beverages investment and one-off impacts of other corporate actions. The JSE-listed group, which traces its roots back to the 1940s, also booked a major R5.3 billion impairment on its 18.8% interest in Heineken Beverages, including R1 billion for goodwill. This investment now has a fair value of about R6.7 billion, with the group grappling with issues including load shedding, consumer pressure, and a shift from consumers away from premium brands, which significantly contribute to its portfolio. Reporting results for the year ended June, Remgro said headline earnings came in at R5.6 billion, a 20% fall, while the discount of its share to its intrinsic net asset value, a key measurement of performance in investment holding companies, widened to 45.8% from 40.8%. But there were also positives, with Remgro hiking its dividend 10% to 264c per share and reporting improved performances from RCL Foods, TotalEnergies Marketing South Africa, OUTsurance, and Siqalo Foods.
-FIN24-
Greame Wild to lead Sappi
Paper and packaging group Sappi announced that Graeme Wild (52), currently vice president sales and marketing at Sappi Southern Africa, has been appointed as CEO of Sappi Southern Africa as from 1 December. Wild succeeds Alex Thiel, who has been CEO of Sappi Southern Africa for 14 years and will now assume new strategic project duties until his retirement at the end of December 2025. Wild holds a BSc forestry degree from Stellenbosch University, an MBA (cum laude) from the Gordon Institute of Business Science, as well as a Sappi MDP from SBL, UNISA and he has completed the executive education programme at Harvard Business School.
-FIN24-