AG Leventis, a composite foods company has disclosed that it will be raising fresh capital to shore its balance sheet as a going concern. The Executive Vice Chairman of A.G Leventis, Mr. Michail Economakis disclosed this at the Nigerian Stock Exchange.
He made the disclosure at the ‘Facts behind the figures’ presentation ceremony at the NSE.
He said “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 fund and we will be able to expand our products portfolio”.
He did not however disclose which investor the company has opened talks with. Economakis did not also disclose whether it will be via a bond issuance and or an equity investment.
The company reported an unimpressive result for the first half of 2016 with a gross revenue of NGN6.442 billion in 2016 versus NGN5.936 billion recorded last year
However, as a sign of the times, AG Leventis said its cost of sales rose by 24 per cent from N4.266 billion to N5.274 billion, while total operational expenses increased by 12 per cent from N1.269 billion to N1.425 billion in 2016.
AG leventis said it ended the first half of 2016 with a net loss of NGN494 million.
Leventis Foods Ltd was founded in 1999, is a subsidiary of A.G. Leventis (Nigeria) Plc, and is one of the largest bakeries in Nigeria producing highly nutritious variety of baked products and snacks, with a strong brand presence in Lagos, Nigeria. The company was established in year 2001 by A. G. Leventis (Nigeria) Plc and Carnac (a holding company based in Cyprus).
A.G. Leventis (Nigeria) Plc has 51% shareholding of Leventis Foods Ltd while Carnac has 49% shareholding of the company. Carnac shareholding was taking over by Nutriart S.A. (a food company based in Athens), in the middle of Year 2010.
