NIGERIA – Beta Glass Plc, the Nigerian maker of glass bottles and containers for the beverage industry has reported 15% growth in revenue growth for the third quarter of its financial year through 30th September 2019.
This growth momentum was attributed to increase of sales to N21.9bn (US$60.5m) from N19.2bn (US$53m) recorder in 2018. The third quarter was particularly strong with an N7.5bn (US$20.7m) rise in sales, a 24% growth.
The company continued to keep costs down with selling and distribution expenses as well as admin expenses declining by 14% and 30% respectively, reports Beverage Industry News NG.
Operating profit grew by 17% in the nine months to N4.9bn (US$13.5m) and by 49% in the third quarter alone.
Net profit surged by 39% in the third quarter to N1.6bn (US$4.4m) and by 10.7% in the nine months to N3.9bn (US$10.7m).
Foreign exchange gain increased by 21% in nine months, with much of it coming in the third quarter with a 245% increase. Finance income declined by 33% in the third quarter and by 21% in nine months.
Early October the glass bottle maker announced that the US$30 million investment to establishing a new furnace and upgrade existing production lines at its plant in Agbara, Ogun State is on schedule to be completed in June 2020.
Once fully operational the new furnace will increase the plant’s annual capacity by 35,000 tons and pioneer use of the Narrow Neck Press and Blow (NNPB) Technology in West Africa, enabling Beta Glass to bring lighter weight, non-returnable glass bottles to market in Nigeria for the first time.
It will also have a planned productive life of more than 12 years and will replace the existing furnace which will end its productive life by next year.
In addition to that the investment will also include an additional production line, including the latest quality inspection equipment which will further enhance operational efficiency.
The new furnace, which will be among the most advanced of its kind globally and will be instrumental to Beta Glass, strengthening its position as the leading supplier of glass bottles and complementary packaging products.