AG Leventis to partner foreign investors on business expansion
To inject fresh funds to boost operations
AG Leventis has disclosed that the firm is currently discussing with foreign partners to inject fresh capital into the company and revamp its business operations. Speaking at the ‘Facts Behind the figures’ of the company on the Nigeria Stock Exchange (NSE) on Tuesday, the Executive Vice Chairman/ Chief Executive Officer of AG Leventis, Michael Economakis said the capital inflow would help the firm expand its product portfolio and reduce cost of operations.
“We are discussing with foreign investors, hopefully there will be capital inflow very soon, this capital inflow will assist us in having better cash flow, there will be reduction in our cost of find and we will be able to expand our products portfolio”, he said.
Speaking on sectors of strategic priorities for the company, Economakis said fast moving consumer goods; automobile, agriculture and real estate are major area the company’s is targeting to develop in the next two years.
He said the firm is also discussing with foreign investors to inject new capital into fast moving consumer goods sector of its businesses.According to him, the firm is expanding their product portfolio into some rich’s products with a potential long term technical service partnership with Pick n Pay, one of the two retailers in South Africa.
On the area of automobile, he said the company commenced production of vehicles from mid 2015 and would expand it plans to enable it commence assembling for other distributors in the region.
He revealed that AG Leventis is looking at the large scale farming in Nigeria that would lead the company to backward integration in agriculture.Speaking on the half-year financial results of the company, the Head of Finance, AG Leventis, Olugbenga Kasomo attributed cost of materials, foreign exchange crises as major problems that hindered the performance of the company.
He explained that the company’s revenue rose by nine per cent, from N5.936 billion in half year 2015 to N6.442 billion at the end of half year 2016.It’s cost of sales rose by 24 per cent from N4.266 billion to N5.274 billion in half year 2016 while total operational expenses increased by 12 per cent in half year 2016 from N1.269 billion to N1.425 billion.
The firm’s profit before tax for the period declined by 298 per cent to close at negative N494 million from N249 profit of 2015 half year.The company’s however forecast a lower loss of 196 per cent in its profit before tax for 2016 financial year-end.
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