Suntory seeks to consolidate on Nigerian acquisition

suntory

Leading Japanese soft drink maker, Suntory Beverages and Foods said it is looking at gaining more traction from its Nigerian acquisition.

On September 30th, 2016, Suntory had completed its acquisition of GlaxoSmithKline’s bottled drinks segment. The group noted in its 2016 full year result released recently that “the Group will strive to reinforce the business foundation in Africa centered on Nigeria.

Nigeria is Africa’s largest economy and market, the hope of entering other markets via the country in understandable.

However, Suntory has not disclosed what other strategy it will devise apart from keeping Lucozade and Ribena brands it acquired from GSK Nigerian unit.

On a year on year basis, the Group reported consolidated net sales of ¥1,410.8 billion, up 2.2% year on year, operating income of ¥93.5 billion, up 1.6%, ordinary income of ¥91.2 billion, up 10.1% and net income attributable to owners of the parent of ¥46.1 billion, up 8.5%.

It should be noted that Suntory declared a full year loss of ¥3.3 billion related to the 2016 Kumamoto Earthquake
was posted, however, the the Group disclosed it “received insurance payments of ¥3.2 billion against these losses and
recorded the amount as extraordinary income”.

Since the disposal of its bottled drinks unit, GSK NIgeria has since focused on its pharmaceutical business to deliver a positive earnings for the full year 2016.