NIGERIA – Beta Glass Plc, a Nigerian packaging group and subsidiary of Frigoglass Industries Nigeria Limited, reported a 23% growth in net profit during its 2018 financial year.
The manufacturer and supplier of glass bottles and containers for the beverage industry posted net earnings of US$13.84 million during the financial year up from US$11.35 million recorded in the previous year.
The strong performance was attributed to growth sales which were up US$72.81 million from US$61.18 million in 2017 supported by reduced expenses across its selling and distribution channels.
This saw the revenues of the Nigeria Stock Exchange Listed firm increase by 19% while its operating profit jumped 35% to US$16.33 million in 2018 from US$12.18 million in the preceding year.
The company declared a dividend of N1.30 per 50 kobo of ordinary shares to be paid to shareholders which is subject to appropriate withholding tax, reports Beverage Industry News.
Indication of Beta Glass road to profitability had been long overdue after the company posted a 58% increase in net income to US$9.64 million during its nine months period to end September.
In December last year, Frigoglass said that it will be investing between US$28.4 million and US$34.1 million in Beta Glass to increase its capacity and revamping its glass operations in Nigeria.
The investment is to see an upgrade in production capacity of Beta Glass’ Guinea plant in Ogun state to 35,000 tons per year and pioneer the use of narrow neck press and blow technology to enable the production of lighter weight non-returnable glass bottles.
The project is expected to become fully operational in 2020.
Beta Glass is a leading manufacturer and supplier of the glass packaging serving the beverage sector with beer bottles, spirits bottles, Wine bottles, as well as pharmaceutical containers among other industries.
Beta Glass is a member of the Frigoglass Group, a strategic partner to beverage bottlers internationally, supplies glass packaging in the emerging markets of West Africa.
The firm, which is 61.9% controlled by Frigoglass Industries Nigeria, has presence in markets beyond Nigeria including Angola, Benin, Burkina Faso, Cameroun, Gabon, Gambia, Ghana, Guinea, Liberia, Mauritius, Rwanda, Sierra Leone and Togo.
The company holds a market-leading position as a glass bottle manufacturer in West Africa and the Middle East, both prime targets for investments by top-tier international beverage brands.