Tuesday, May 3, 2011
THISDAY, Vol. 16, No. 5853, P~ge 35
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BusinessWORLD: industry. Dangote Hits Market with New Flour Brands~ angote Group has announced that it was set to hit the market with Dangote Flour's wheat meal brand, Alkarna and retail packs for Aour and Danvita. The Nigerian conglomerate said with the new move of its flo ur subsidiary the future is bright for the shareholders of Dangote Aour Pic as the company was positioned to take over market leadership.
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By Crusoe Osagie The introduction of both Alkarna and Danvita, according to the Group Managing Director of Dangote Aour, Rohit Chaudhry, will lead to an increas~ turnover for the company and dividend payout for the shareholders. 'This move is targeted at creating more market share for
the wheat meal which has made name in some parts of the counll)';' he said adding 'With the planned introduction of our wheat meal brand, Alkama and retail packs for our flour and Danvita. the future looks bright and our company is positioned to take over the market lead and create more value for our shareholdern.' Chaudhry who gave the
P&G Continues Broad-Based Volume and Market Share Growth he
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Company has announced third quarter diluted net earnings from continuing operations of $0.96 per share, an
increase of 16 percent. Core EPS was up eight percent. within the Company's guidance range. The Company continued (0
deliver broad-based volume and market share growth. Volume was up five percent behind growth in all six business segments, I60f 17 top countries, and 20 of24 billiondollar brands. Market share was up in all geographic regions and flat or higher in 14 of the top 17 countries and for 18 of 24 billiondollar brands. Businesses repre· senting about tw<rthirds of net sales maintained or grew market share.
Net sales increased five percent to $202 billion driven by five percent volume growth. as weU as favorable pricing and foreign exchange, partially offset by geographic and product mix . Organic sales, which ex.clude the impaclS
of acquisitions. divestitures, and foreign exchange, grew four percent. "The growth fundamentals of our business are strong,'t said Chairman of the Board , President and Chief Executive Officer Bob McDonald. "We delivered broad· based volume, sales, and market
share growth, and grew EPS in a very difficult operating environment. We increased our dividend
for the 55th consecutive year, by 9 percent. We continue to advance
our Purpose-inspired growth strategy of improving the lives of more consumers, in more partS of the world , more completely." Net sales increased five percent
and organic sales grew four percent ror the quarter. Diluted net earnings per share from continuing operations increased 16 percent to $0.96. Core EPS, which excludes US. heaJthcare refonn legislation costs in tile base period, increased eight percent as benefits from sales growth, cost savings, and reductions in the effective tax rate and shares outstanding were partially offset by negative impacts from higher input costs and higher marketing and portfolio expansion investments. Market share was up in all geographic regions and flat or higher in 14 of the top 17 countries and for 18 of 24 billion-dollarbrands. Operating cash flow was $4.t billion for the quarter while free cash flow, which is operating cash flow less capital spending, was $32 billion and It 3 percent of net earnings. Net sales increased fiVe percent to $202 billion on five percent unit volume growth. Organic sales were up four percent. Volume growth was broad based, with growth in all major geographic regions, I60f 17 top countries, all six business segments and 20 of 24 billion-dollar brands. Volume increased high single digits in developing regions and low single digits in deve1~ped regions.
Positive pricing and favorable foreign exchange each contributed one percentage point to net sales growth. Negative product and geographic mix reduced net sales growth by two pen:entage points. Market share continued to grow behind the Company's innovation and expansion plans. Share: was up in all geographic regions and flat or higher in 14 of 17 top countries, 5 of 6 reporting segments and 18 of 24 billion-doUar brands. Global madret share is up versus the prior tJuee, six and 12 month periods. Operating margin contracted 210 basis points primarily driven by lower gross margin. Gross margin declined 140 basis points due to higber commodity costs and unfavorable geographic and product mix, which more than offset manufacruring cost savings, pricing and volume scale leverage. Selling, general and administrative expenses (SG&A) as a percentage of net sales increased 70 basis points behind foreign currency impacts and investments to suppon the Company's innovation and market expansion plans, partially offset by a reduction in overhead spending as a percentage of sales. Diluted net earnings per share from continuing operations were $0.96, an increase of t6 percent driven by a reduction in the current year effective tax rere, base period income tax charges related to US. healthcare legislation, and a reduction in shares outstanding. Core EPS was $0.96, an increase of eight percent. Operating cash flow was $4.1 billion for the quarter, whi le free cash flow, which is operating cash flow less capital spending, was $32 billion and 11 3 percent of net earnings. The Company repurchased $1.0 billion of shares during the quarter and returned another $1.4 billion or cash to shareholders as dividends. Earlier this month P&G anno_unced a nine percent increase !o its quanerly dividend. This is the 121 st consecutive year since P&G was incorpornted in which
the Company has paid a dividend; and the 55th consecutive year that me dividend has increased.
Beauty net sales increased five percent to $4.9 billion, on five percent volwne growth. Organic volume, which excludes the net impact of Zest· and minor fragrance divestitures, increased six percent and organic sales grew four percent. Volume growth was driven by double-digit growth in developing regions, while volume in developed regions was fl at. Favorable exchange improved net sales by two percent and higher pricing improved net sales by one percent Product mix reduced net sales by three percent due 10 disproportionate growth in deve\oj>ing regions. Volume in Retail Hair Care grew high single digits behind double-digit growth in developing region') due to Wtialive activity and distribution expansions in Asia and Latin America. Volume in Female Beauty was in line with the prior period as Olay skin care distribution expansion in Asia ·and Latin America and deodorants growth in North America were offset by a mid-single digit . decline in developed markets driven by the Zest divestirure, competitive activity in North America Cosmetics, and decreased shipments in North America Skin ahead of the Olay LN refonnulation and restage. Volume in Salon Professional declined high single digits due to the exit of non-strategic businesses and market contraction in Western Europe. Volume in Prestige Products was up high single digits behind continued success of fragrance initiatives, partially offset by minor brand divestitures. Net earnings decreased three percent to $547 million, as lower operating rnaIE:i" more than offset the impact of sales growth. Operating margin declined behind increased marketing inveslments, partially offset by manufacturing cost savings and a reduction in overhead spending as a percentage of sales.
Nestle to Enter Partnership with Chinese Food Coy estle has announced that it had signed a partnership agreement taking a 60% stake in the Chinese food company Vinlu Foods Group (Vinlu). Vinlu's Chairman, Mr. Chen Qingyuan, will continue to lead the company in the new partnership. The rransaction is subject to regul atory approval in China. Other details of the transaction, including the acquisition price, are not being disclosed. Family-owned Vinlu is a we ll established household brand in China and a significant marketer for ready-todrink peanut ntilk and readyto-eat canned rice porridge. The agreement builds on an
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already successful partnership between the two companies, as . Yinlu is a co-manufacturer for ready-to-drink Neseafe coffee in China. Ymlu's 2010 sales amounted to around CHF 750 nti llion. Yinlu's products are tailored to Chinese consumers' taste and habits, and complement Nesde's existing product portfolio in China, whi ch includes cul inary products, coffee, confectionery, bouled water, ntilk powder and prod.ucts for the foodservice indus11)'. The healthy and nutritious Yinlu products perfectly fit into Nestle's global portfolio and emphasise its core strategy as the world's leading nutrition, health and well ness company.
assurance recently in a chat with select journalists in his office in Lagos also said the company is on the verge of ISO: being awarded 22000:2005 Food Safety Management System, the first flour mill company in Nigeria to achieve the feat. "The on-going "Semolina Mills" of 1,500mt per day would come on stream by the end of the 2nd quarter. This is a dedicated ntill for the production of Danvita-<>ur brand of Semolina with the lateS! milling technology. This would definitely to product consistency of every bag of Danvita and ' for the complete satisfaction of the general pub-
Limited projected that the share value will soon hit N24.62 per share, Stanbic IBTC African projected a share value of N30.00 kobo per share. The 20 II outlook for Vetiva stated mar: ·"We revised our Target Price fo r 'Dangflour' to N24.62. Despite likely pressure on earnings from rising price of wheat on the global scene, our target price still gives a 28 per cent potential upside, hence our BUY ratin g on the stock" Vetiva further stated that its optimism on the growth prospect of the company is premised on the company's efforts at reyamping its operations and rolling out innovarive products.
lic. Not only are we one of the very few flour millers in Nigeria in Nigeria that have mills dedicated to semolina production, we are the only dedicated ntill with the highest number of production lines. It would be recalled that capital market analysts last week predicted a significant share value rise for Dangote Aour stock, expeoted to hit N30 per share before the end of the financial year. Capital market analysts pre· dicred a significant appreciation in the share value of Dangote Aour, which closed last week at N16:98 kobo per share. While Vetiva Capital Market
Nestle invests $40m in Malaysian Cereals Factory ereal Partners Worldwide (CPW), a joint venture between Nestle and General Mills, will invest CHF 35 million <lver two years in the construction of a new breakfast cereals factory in Malaysia. The factory - due to begin production in 20 12 - will make best-selling Nestle breakfast cereal brands Koko Krunch, Honey Stars, Cookie Crisp, Koko Krunch Duo and Milo, for consumers in Malaysia, and for export to Singapore, Indonesia and Thailand. Located in Chembong, Negeri Sembilan, the 6,500 metre square factory wi ll
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enable the local production of Nestle breakfast cereals for the first time in Malaysia, which are currently being imported. Frits van Dijk, Nestle's Executive Vice President and Zone Director for Asia , Oceania, Africa and th e (AOA), Middle East explained why Malaysia was selected as the factory 's location .· He said: "In add ition to spreading the production base the region, throughout Malaysia was selected based on the read ily available quality local ingredients as well as fo r the country's investment
friend ly environment and infrastructure. "Having a factory in Negeri ,Sembilan also means that we 'are producing the breakfast cereals right here in Malaysia, whic h is one of the most important markets in the region. This will create hundreds of direct and indirect jobs, so benefiting Malaysian society." The new faclOry, _which will source up to 80% .of its ~ raw materia1s from local suppliers, wi ll be built based on policies for enviro nmental sustainability adopted by both partners in the CPW venture, and in full compliance with environmental legislation.
PUBLIC NOTICE "
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FEDERAL MINISTRY OF ENVIRONMENT ENVIRONMENTAL IMPACf ASSESSMENT (EIA) OF mE PROPOSED ABEOKUfAOTA TRANSMISSION liNE PROJECT BY NIGER DELTA POWER HOLDING COMPANY LIMITED (NDPHC) In accordance with the Environmental Impact Assessment (EIA) Act No. 86 of 1992,which makes itmandatoryforproponents of all new major development activities to carry out Environmental Impact Assessment on their proposed projects, the Federal Ministry of Environmenthereby announces atwen· ty{lne(21)workingdaypublic Notice for infOimationand comments on the draft EIA report s.ubmitted by Niger Delta Power Holding Company Umited
Proiect Description The proposed prolect activities would Involve the construction of a substation at Ototo Lukove and a new 9010n l32ky double circuit line from Ota to Abeokuta.
The Dlsplav Centres are: I) Ogun State Ministry of Environment. Abeokuta, Ogun Stale Ii) Ewekoro Local Government Headquarters, Ewekoro, Ogun State III) Abeolwta North Local Government Headquarters. Abeokula- North, OgunState . Iv) Obafeml-Dwode Local government Headquarters. Obefemi-Owode, Ogun state I/) FMENV Office. Games Village. Surulere. Lagos Vi) FMENV Office. Plot 444 Aguiyi Ironsl, Mait8lna, Ahuja Vii) FMENV Office. Federal Secretariat, AheoIruta. Ogun state Duration of Display Date: 3rd - 31s1 May, 2011 Time: B;OO- 4.00pm Daily
ALL COMMENTS RECEIVEO SHOULD BE FORWAROEO TO THE PERMANENT SECRE-
TARY. FEDERAL MINISTRY OF ENVIRONMENT ON OR BEFORE 31ST MAY, 2011 SIGNED PERMANENT SECRETARY
FOR: HONOURABLE MINISTER