Conagra Brands lowers full year profit expectations amid rising inflation in the US

US – Conagra Brands, a US-based packaged foods company, is feeling the pinch of the recent inflation levels in the US and has warned that higher raw material and ingredient costs would take a bigger bite out of its profit this year than previously estimated.  The U.S. is currently facing what financial experts refer to as a “transition inflation” that has seen consumer prices increase by the most percentage in 13 years.  According to Reuters, COVID-19 vaccinations, low-interest rates, and nearly US$6 trillion in government relief since the pandemic started last year are fueling demand for everything from cars…

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Botwana retailer Choppies turns to profitability courtesy of restructuring efforts

BOTSWANA – Botswana based retailer, Choppies Enterprises Limited has attained its first profit since 2016 of P37.7 million (US$3.4m) in the six months ended 31 December 2020, a rise from the loss of P139.2 million (US$12.56m) attained in 2019. According to the company, the turnaround performance is attributed to the benefits from restructuring the business following the exit from underperforming investments. Despite the impressive bottom-line performance, the group’s revenue decreased by 8.7% to P2.711 billion (US$244m). This decline was a result of negative volume growth due to the impact of…

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PepsiCo revenues jump 20.5% in Q2 buoyed by recovering out-of-home consumption

US – PepsiCo, a US-based multinational food and beverage company, has reported a 20.5% increase in net revenue in its second-quarter results buoyed by easing pandemic restrictions in its major markets across the world.  For the quarter ending 12 June 2021, the company posted net revenues of US$19.22 billion, compared with the US$15.95 billion recorded for the same period last year.   The company’s PepsiCo Beverages North America division put in a strong performance in Q2 with a 24% increase in net revenue, while volume increased by 15%.  PepsiCo says that it gained market…

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Economic headwinds weigh down Tongaat Hulett’s performance widening its headline loss to US$75m

SOUTH AFRICA – Sugar producer Tongaat Hulett, has posted a wider headline loss of R1.1 billion (US$75m) for its financial year ending March 31, 2021, compared to a headline loss of R285 million (US$19.5m) for the prior full-year. This saw the South Africa headquartered group, which was rocked by an accounting scandal involving former executives just over two years ago, reporting a headline loss per share of 822 cents, a dip from 211 cents of 2020. The company attributes the decline in performance to South Africa’s broader Covid-19 economic fallout…

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Indian milk brand Amul beats pandemic odds to record 2% growth in revenue for FY21

INDIA – The Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), which markets dairy products under the Amul brand has beaten all odds to record a 2% rise in revenue for the 2021 Financial Year (FY21).   According to a statement released by R S Sodhi, Managing Director at GCMMF, the cooperative’s total turnover rose to Rs 39,200 crore (about US$5.2 billion) from Rs 38,550 crore (about US$5.189 billion) recorded in the same period last fiscal year.  During FY21, Sodhi said the company benefitted from a rise in demand for its branded consumer products like fresh…

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Dwindling capacity of slaughter-ready animals in Namibia take huge bite in Meatco’s earnings

NAMIBIA – Meat Corporation (Meatco), a state-owned meat processing and marketing entity in Namibia, has reported a loss of N$118 million (US$8.21m) for the year ended January 2021 financial year. The dip in bottom-line performance is due to the dwindling number of cattle slaughtered during the period under review, dropping by 60% heads of cattle. According to reports by The Namibian, the huge slash of slaughtered animals has led to the meat processor earning N$873 million (US$60.75m) in revenue, compared to N1.78 billion (US$123.87m) realized in the previous corresponding period…

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South African sugar manufacturing giants RCL Foods, Tongaat Hulett expect rise in full year earnings

SOUTH AFRICA – RCL Foods, South African consumer goods and milling company expects its profit for the year ended June 2021, to exponentially rise by as much as 592%, boosted in part by strong recovery in sugar and baking segment. The owner of Selati sugar, Ouma rusks and Rainbow Chickens brands, indicated in a trading update that it expects its headline earnings per share to be at least 90 cents compared to 13 cents a year ago on a recovery in sugar and baking. Meanwhile, its earnings per share would…

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Seed Co International posts bumper profits following stellar performance in all its markets

AFRICA – Seed Co International Limited (SCIL), has recorded a 26% spike in revenue to US$88.5 million in the year ended March 2021, compared to US$70.1 million achieved in the prior year. According to the seed producer, the revenue growth is attributed to doubling of income in Malawi to US$18.4m, benefiting from the huge government Inputs program. The same performance was reflected in Nigeria albeit from a low base of US$1.1m last year, due to increased confidence in the Seed Co brand, supported by institutional sales under a program funded…

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Flour Mills of Nigeria reports triple digit growth in profit despite economic headwinds

NIGERIA – Flour Mills of Nigeria (FMN) Plc, one of Nigeria’s leading food and agro-allied companies, has achieved impressive top-line and bottom-line growth in the year ended March 31, 2021, showing resilient performance in the face of the pandemic. The owner of the iconic Golden Penny Food brand, has recorded a 34.5% rise in revenue from N573.77 billion (US$1.3 billion) of the previous corresponding period to N771.6 billion (US$1.8 billion). The growth has been attributed to robust growth across all its segments with an average revenue gain of 34 per…

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Zimbabwe’s African Distillers Limited reports rise in sales volume triggered by surge in spirits demand

ZIMBABWE – African Distillers Limited, manufacturer, distributor and marketer of branded spirits, ciders and wines in the Zimbabwean market, has reported sales volume growth of 34% in the nine months period ended March 2021. According to the beverage maker, the growth was triggered by surge in the consumption of spirits and ready to-drink beverages which grew by 50% and 22% respectively. The company indicated that a new product, Gold Blend Number 9, was launched in the spirit category during the period under review, and was well received by the market…

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