Finally, Nyeso Wike weeps as PDP stops him

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Read Time:4 Minute, 23 Second

The battle of wits in the Rivers PDP has finally dealt a blow on the supervising Minister for Education, Nyeso Wike as he and his men wept uncontrollably on Tuesday night when the Minister broke the news that he has been asked to drop his governorship ambition by the powers that be.

According to Prince Chidi Weli the Spokesperson of RIVERS PROGRESSIVE FORUM, “it was not clear on what eventually led to this decision by the Presidency and the PDP to stop Chief Nyesome but unconfirmed reports from a source who was privy to the meeting said the internal crisis within the state chapter of the PDP was largely responsible for the Minister's current woes.
 
Wike who was seen as the man responsible for the widening of gaps between the Presidency and the Rivers State Governor had hijacked the Party machinery from Gov. Amaechi who had trusted him with the political aspect of his government was shocked when the state Party Chairman, G.U. Ake was replaced by Felix Obuah who was never part of the Congress that voted Ake into office. It was alleged that Goround as he is popularly called had travelled out of the country two days before the Congress.  But in what looks like a scene from Nollywood, Obuah,  a close ally of Ake was the willing tool in the hands of Wike and Prince Uche Secondus to nail Amaechi at all cost. 
 
It was gathered that Ake actually won the election but resumed duty at the State Party Secreariat without a Certificate of Return from the National Secreariat of the Party. That thud afforded these men the opportunity to append Obuah's name on the Certificate which they presented in Court. Surprisingly, the Court refused to admit a video evidence of the Congress tendered by Ake's counsel. INEC officials were not left out in this conspiracy.
 
At the end, Ake lost out to a man who did not even pick a nomination form and was not part of the Congress.  As Ake lost, so did Amaechi.
 
The stage was then set for the frustration of Amaechi out of the Pary. Wike did not stop to show his disdain for his former boss and ally. He became the hatchet man for the job of pulling Anaechi down in defence of his new found boss, President Jonathan.
 
He was given a free hand to run the Ministry of Education, after the unceremonious exit of the Minister. Choice contracts were awarded to cronies and supporters even at tge expense of poor quality jobs.  In some cases, it was alleged that the jobs were not executed but payments were made. 
 
The failed attempt to impeach Amaechi also proved another opportunity for millions of naira to exchange hands. While the siege on Rivers state lasted with the alleged support of the First Lady, the President kept mum. 
 
But Wike may have bitten more than he could chew when his crony, Obuah publicly announced Wike's ambition to succeed Amaechi. Using the GDI, he hijacked the party structure while he trasversed the nooks and crannies of the state. He moved unchallenged until Elemchukwu Ogbowu dared him. Ogbowu said it was morally wrong for Wike, an Ikwerre man to succeed his kinsman, Amaechi.  The former lawmaker said the proper thing was for power to shift to the Riverine people of Kalabari or to the Upland people of Ogoni. 
 
That audacity to challenge Wike and Obuah incurred a suspension and later an expulsion hammer on Ogbowu and a few others with him. But Ogbowu was not done yet as he galvanised the support of those who were against the plot to enthrone Wike and together they petitioned the NWC of the PDP led by Adamu Muazu.
 

The pressure was on Wike to recall the men and drop his ambition, but as it is said, whom the gods want to kill, they first make mad; Wike would not bulge, rather he went ahead to sponsor his crony, Chukwuemeka Aaron to obtain a suspicious Court order restraining the PDP National from dissolving or changing the Rivers Exco led by Obuah. This was a move aimed at stopping the Party from changing the Exco during the forthcoming mini – convention of the party in July.
Unknown to Wike, that was his death nail as that action angered the Party leadership as well as the President. 
Last week, he was asked to vacate the Order but he chose to 'fight back', more so when he had spent so much in pursuing his ambition.
 
Now, it is obvious that he would be dropped from the Federal Executive Council, having tendered his resignation notice; it is just enough reason for him and his foot soldiers to weep. 
Our source also gathered that the meeting which lasted into the wee hours of the morning were brainstorming on how best to break the news to the public. The group agreed that a Press Statement would be issued claiming that the Minister never had any such ambition.

Prince Chidi Weli
Publicity Secretary, Rivers Progressive Forum

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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Nestle Nigeria Plc: Stronger profitability growth impeded by rising operating costs

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Read Time:5 Minute, 28 Second

Renowned for quality nutrition, health and wellness products around the world, Nestle Plc maintains a substantial share of the market despite being impacted by stiff competition and declining consumer expenditure. The first sales of Nestle products in Nigeria date back to the beginning of the 20th century. This was through local importers who placed their orders directly with British trading companies who were active in the country at that time. Imports were sporadic and at fiat, but became regular from the 1920s when Nestle decided to set up office in Nigeria to organize the importation and distribution of products.

Nestlé Nigeria Plc was listed on the Nigerian Stock Exchange on April 20, 1979 and is currently the third most capitalized stock on the exchange. The sustained popularity of the Company’s brands, such as Milo, Maggi cube, and Cerelac, as well as their superior quality, continues to drive consumer demand.
The Company recently published its first quarter accounts for the period ended March 2014, reporting a gain of 8.89% in turnover to N33.43 billion. However, net income and pre-tax earnings stayed flat at N7.07 billion and N6.00 billion respectively.

SUPERIOR QUALITY BRANDS DRIVE REVENUE
For the first quarter period ended March 2014, the Company grew revenue by 8.89% from N30.69 billion to N33.42 billion, thanks to the company’s quality and household brands such as Milo, Maggi cube and Cerelac, which has helped the Company sustain its market share amid stiff competition and declining consumer expenditure. Further insight into the Company’s financials revealed that the Food segment with brands such as Maggi, Nan, Golden Morn and Nutrend contributed 56.99% of total revenue which stood at N19.05 billion while the remaining 43.01% (14.37 billion), was from  the Beverages segment with brands such as Milo, Chocomilo, Nido, Nescafe and Pure Life.

Cost of sales also went up by 6.30% to N15.56 billion in March 2014 from N17.45 billion in the corresponding period of 2013 due to increase in the cost of raw materials used during the production process. Nevertheless, gross profit increase by 12.29% to N14.86 billion from N13.23 billion, due to the higher increase in revenue, in comparison with the increase in cost of sales recorded over the period.

GROWTH IN OPERATING PROFIT HAMPERED BY RISING EXPENSE
Operating profit in the first quarter of 2014 increased marginally to N7.72 billion from N7.51 billion, representing a 2.76% change. The primary reason for the meagre growth in operating income can be traced to higher increase in operational expenses which the Company incurred during the financial period that prevented a stronger growth in profit. The Company’s distribution expenses grew by 30.58% to N5.64 billion from N4.32 billion due to higher cost of transportation of products and promotional expenses in keeping the Company’s product brands in consumers’ minds while administrative expenses grew by 5.09 to N1.49 billion from N1.39 billion, due to upgrades and renovations of various production facilities and storage barns expansion through the country.

DECLINE IN INVESTMENT INCOME IN ADDITION TO INCREASED FINANCE COST ERODES PROFITABILITY
Income from investment activities declined significantly by 44.82% to N217.42m in the first quarter of 2014 from N394.03m recorded in the corresponding period of 2013. This was as a result of a decrease of 54.01% in interest income on bank deposits to N132.86m from N288.93m and 19.54% decrease in interest income on loan re measurement to N84.56m from N105.10m over the period.
On the other hand, finance cost grew by 1.58% to N872.90m in March 2014 from N859.31m in March 2013 due to a slight increase in borrowings by the Company. The combination of the decline in finance income and increase in finance cost therefore impacted the Company’s profitability negatively as pre-tax earnings only grew slightly by 0.28% to N7.07 billion in 2014 from N7.05 billion in 2013. Net income also grew by 0.15% at N6.01 billion from N6.00 billion over the period.

CREATING SUSTAINABLE BUSINESS THROUGH LOCAL SOURCING OF RAW MATERIALS
To stimulate industrial growth, the Company has long term sustainable business practices. Almost all of the Company’s key ingredients are sourced locally through farmers and suppliers where available. In addition to its commitment to local sourcing of raw agricultural materials, the Company is involved in two major initiatives in the agricultural sector.

In 2011, Nestle Nigeria commenced a new project to help farmers increase output and quality of cassava starch production in collaboration with the International Institute of Tropical Agriculture (IITA) in Ibadan. The project is aimed at increasing productivity per hectare in cassava through multiplication and dissemination of high yielding varieties and ensuring smallholder farmers’ benefit from improved cassava management practices.

The project will enable sustainable supply of cassava roots (with high starch content) to local processors. The Company has committed over N120million on this project for over two years. The second project, Grains Quality Improvement initiative is aimed at ensuring high quality grains by reducing Mycotoxin contamination in grains through good agricultural and storage practices. This project has significantly reduced the nutritional and economic losses in grains and legumes and ensures high quality raw materials for our factory.

WE MAINTAIN OUR HOLD RECOMMENDATION
The first quarter results for Nestle Nigeria Plc puts the Company in the path of achieving our earlier projections for the full year. Despite this greener outlook, we are conservative in our approach. With respect to operating expenses, we believe that the significant growth in distribution, sales and marketing costs was part of a business strategy geared towards increasing product penetration and sustaining market leadership in a matured sector.
Taking into account external business cons

traints in the current operating climate such as flooding due to the heavy downpours, disruptive effects of unrest in the North-Eastern region of the country, and a persistent high interest rate environment, we project revenue of N157.61 billion and net income of N25.61 billion for the full year ended December 2014, leading to a 9-month forward EPS of N32.32. Using the justified PE method of valuation, we arrived at a 12-month average value of N1,297. Since our target price represents a 12.85% upside on the current stock price, we place a HOLD recommendation on Nestle Nigeria Plc.

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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At the Football Museum, Sao Paulo

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Read Time:3 Minute, 28 Second

Brazil’s love affair with football is better understood after visiting a Sao Paulo museum dedicated to the beautiful game, writes Demola Ojo

It’s all about the World Cup at this time of the year as the eyes of the world shift to Brazil in celebration of the beautiful game. With matches across 12 cities in the South American country, there is enough live football to satiate even the most demanding of fans.
For the history buff or the tourist in Sao Paulo wondering why hosting the World Cup is such a big deal for Brazil, look no further than the Museu do Futebol, located at the entrance of the Pacaembu Stadium. The passion on the streets and in the stadiums is better understood after a visit to the museum which is a travel destination in its own right.

The museum is open from Tuesday through Sunday from 9am to 9pm  with an entrance fee of  six Brazilian Reals. It is free on Thursdays though. Daily attendance is about 1,200 but this has doubled to about 2,500 due tourists in town for the World Cup.
The atmosphere on getting to the museum is party-like, especially during the World Cup. It is not out of place seeing a samba band performing outside; men drumming, ladies dancing.
The collection of posters that decorate the entrance hall to the museum are an excellent introduction to the trip into the football past of the five-time world champions.

Like a visitor to Sao Paulo is bound to find out, Portuguese is the language of choice. However, many of the employees at the museum speak English and quickly offer assistance, including how to navigate your way either thorugh a map or an online app on your phone.
There is a temporary exhibition on the ground floor which is open only for the duration of the World Cup. The escalators however open up the world of the museum proper itself. The walkway is sometimes brightly-lit or pitch-dark depending on if you are viewing pictures or videos.

The museum shows the history of football, Brazilian football legends has old movie clips and radio transmissions from famous football games, interviews with football personalities in Brazil and an entire room dedicated to Brazil’s football ‘king’ Pele.
At the museum the emphasis is very much on technology and interactivity as a means of telling the history of Brazilian soccer and society.

Sometimes, the roar of the crowd from the speakers is deafening, with footages as far back as the last World Cup finals held in Brazil in 1950. Some of these exhibits really come alive.
There is a particular screening room where visitors can see the final moments of the 1950 World Cup final when Uruguay beat Brazil 2-1 in the final minutes of the second half. The silence at Maracana stadium after Uruguay scored is better experienced. The mood suddenly turns solemn and in that moment it is obvious how important winning the World Cup is to Brazilians.

Among many of the interactive features at the museum is the chance to ‘play’ Brazilian superstar Neymar in a game where the Brazilian striker passes the ball to the visitor, who then has to kick the ball back.
There is a section of the museum devoted to photos from times gone by and you could spend a great deal of time there contemplating the amazing collection of snapshots from the first decades of football history. There are also exhibits showing the evolution of footballs and soccer boots.

OF course, the museum wouldn’t be complete if there was no shop to buy memorabilia and souvenirs. Everything from jerseys of the various participating teams to a replica of the world cup (in gold are available for sale.
There is a restaurant too with indoor and outdoor sections where both Brazilian and international dishes can be found. World Cup matches can be viewed here and as night falls there is music which helps in making a visit to the music a well-rounded experience for the visitor.

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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NIGERIA: Surveillance Industry, Key to Crime Prevention

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Read Time:4 Minute, 3 Second

Raheem Akingbolu writes on video security surveillance which has become a major tool  of combating crime and fire outbreak in many countries and the need for Nigeria to toe the global trend

Despite its relevance to protection of human lives, the surveillance industry is yet to appeal to millions of people, especially in the developing nations. As a result of this, only a few people have the consciousness of the benefits the security surveillance presents. But with the emergence of internet in the business world, which has helped globalisation, awareness is daily being created. This obviously explains why security enterprises are now becoming a major feature in Africa and around the world.

To raise the stake and add more values to human existence, experts and researchers in the field have resorted to video security surveillance because of its ability to detect crimes or source of any unforeseen incidence. It is believed that adapting the system can help resolve a number of crimes or prevent accidents in homes and offices.
Every day in Africa, people are subjected to living in fear and with little or no confidence in the ability of the institutions of law and order to protect them and their properties. With different security needs the surveillance methods recommended by security agencies will surely differ.
In the last 10 years in Nigeria, there have been a number of fire outbreak, robberies and murder causes of which are still shrouded in mystery. Also there have been car thefts that could not be traced.

Aside from mischief and security related issues that various security surveillance systems and cameras are often useful for, experts have argued that these new technology – video cameras – can also be used as a tool for boosting businesses. According to Business Development Manager, Axis Communications, Roy Alves, this is possible because such cameras will help in monitoring customers’ purchasing patterns to get a sense of their purchase patterns and demography. He said this will help support the store owners in making decisions on stocking of fast selling items.

To Alves, adapting theses sort of security measures and tools in a country like Nigeria, will help bring about a more secure nation, reduction in crime and corruption.
Though it has often been argued that adapting security surveillance systems in the world cannot stop these delinquencies, nobody has contested the fact that such move can reduce it.
With the recent findings that video surveillance system will keep business, property and family safe, not a few people have advocated the solution. So far, three methods have been adopted; surveillance DVR, CCTV security cameras, and remote internet access and monitoring.

Speaking on the devices, Alves, described Surveillance DVR as a digital video recorder (DVR) that is similar to the PVR of old, but that the new system allows users to record much more with clarity, color and great picture quality.
“That means that you can record days at a time, especially when you are away and someone breaks in, your DVR will catch their face with perfect clarity. The DVR is a great advancement for security systems. As more security companies emerge, the quality of security systems have greatly improved compared to back in the days when it was impossible to get a face off the surveillance system,” he said.
He also stated that CCTV security cameras, which are useful for both indoor and outdoor uses, come with amazing features like waterproof durability and infrared imaging that will allow users to see what is going on in the dark.

On remote internet access, he said it allows users to monitor their businesses and property on the go. “This wonderful feature is in existence through the high-speed internet access. In developed countries like the US and UK, where internet access is at the speed of  light, people are able to surf the net at high speed, and monitor their house from a computer, especially while they are on vacation, so that they can have the peace of mind knowing that there is someone watching. If they see someone break in, all they have to do is call the police and watch them pick up the thieves,” he pointed out.

However, one of the challenges, according to him, is that when using security surveillance cameras, it is important to be able to access and view it over the Internet. To do this, he advised that a high speed Internet connection must always be available both at the location of the surveillance system and the location where the user wants to view the cameras from.
As a result of these challenges, some observers have concluded that this might be one of the major hindrances of adapting video security surveillance in Africa and indeed Nigeria as cost of internet and the dawdling internet access may be a stumbling block.

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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‘Internship Programmes for Varsity Students Key to Skills Acquisition’

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Read Time:6 Minute, 27 Second

Founder and CEO of Easy Taxi Nigeria, Bankole Cardoso, was born and raised in Lagos before moving to the United Kingdom to attend Rugby School from where he moved on to the United States to study business management at Boston College. The 25 year-old entrepreneur returned to Nigeria 12 years later to establish Easy Taxi, a free Smartphone application that gives users the ability to request a car on-demand at any time of the day. In this interview with Festus Akanbi, he speaks  on urban transportation challenges and the quest to create a trusted taxi culture in Nigeria

Can you explain what gave you the motivation to go into transportation business and why is the focus on taxi services?
I noticed that there was a poor taxi culture in Lagos compared to other big cities that I have visited or lived in.  When visitors come to Lagos or expatriates are sent here for work, taxis are hardly ever considered as a transportation option, instead they arrange private cars.  For Lagos residents as well, taxis are often not the first option for a number of reasons.  Through the Easy Taxi technology platform I believed that we could make taxis more appealing to people in Lagos and more importantly that we could contribute to the development of the transportation network in the city.

Which of the banks are you partnering with and what is your experience with banks given the fact that most Nigerian banks are risk averse?
We have partnered with Zenith bank and I must say that they have been great. We are working with them to integrate in-app payments in our application and it is clear that they are very professional and experienced.

Where did you source your initial capital from and do you have a prior experience in transport business?
Our initial capital was sourced from Rocket Internet, the world’s largest Internet incubator.  They have a lot of experience having started up successful companies such as Jumia and they have an existing business network for us to tap into.  I did not have any direct experience in the transportation business but I have learned very quickly.

Can you tell us why you have chosen Lagos as your base?
Lagos is my hometown so it was only natural to begin here.  It is the one city I understand and know the best.

Lagos State government has come up with a couple of transportation guidelines, what do you think?
The new transportation guidelines that Lagos State government has come up with are fantastic.  It is much needed and I am sure the guidelines will improve and revamp the transportation network across the state.  It was a big moment for us to be included in the discussions with the Lagos State government as they recognise Easy Taxi as a key stakeholder in the transportation system in Lagos.

Do you have any fear that the current bad road system could affect business?
The poor infrastructure is certainly a challenge but we use our technology to work around this as much as possible.  We are connecting users to drivers that are very close to them so while infrastructure is still key, we are able to minimize the effect that it has.

Is there any plan for partnership with corporate bodies in the form of transport services to them?
Yes, we already have some big corporate companies and we are officially rolling out a new platform called Easy Taxi Corporate, which we have designed and created specifically for Corporations.  We believe that we can cut their transportation costs by up to 40 per cent in some cases; so this can be a really powerful tool for them.

How can we effectively tackle problem of youth unemployment in Nigeria?
We need a holistic approach to solve unemployment.  We need to create more jobs but we also need more qualified candidates.  The issue we have in Nigeria is structural unemployment; there is a mismatch in the skills that workers offer and the skills that employers need.  To improve this, we need to focus on education and train people better.  Both the government and the private sector are key to job creation.

I strongly believe that internship and apprenticeship programmes for university students will help them to get some sort of work experience before they are actually looking for full time employment.  It would be wonderful if there were more opportunities for students to get work experience in their two-month summer holidays.  The employers would not have to pay them much but it will be invaluable experience for the student in the long run.

What are the plans put in place to enlarge this organisation?
We have created a good foundation for our business in Lagos and we believe that we have a team that can help us expand to other cities in Nigeria.  Easy Taxi is a scalable business.  We have a network of around 700 drivers in Lagos and Abuja and we plan to expand to Port Harcourt, Ibadan, Benin and other cities in the next few months.  We have also recently launched in Accra and Nairobi.

What are your projections for the rest of the year?
We have been achieving close to 100 per cent  growth month on month and we hope to continue this impressive rate of growth.

Did you know you were going to be an entrepreneur all along, or did it happen by chance?
I always believed that I would start my own businesses but I did not expect to start one so soon.  I gained valuable skills and experience working at big corporations but I never considered staying in the corporate world for the duration of my career.  I have been buzzing with ideas for a long time, especially ones tailored to emerging markets like Nigeria’s because I am keen to support development in these regions.

What are some of the obstacles you have encountered in your business journey and how did you overcome them?
Opportunistic people.  There is nothing more frustrating than people that offer nothing but have the sole motive of taking advantage; I am a patient person but I have learned to spot and stay clear of such people and organisations.

How do you describe your leadership style? And how do you keep the Easy Taxi team motivated?
I am a trusting leader.  I believe in giving people responsibility and encouraging them to take ownership of their tasks so they can measure the direct impact of their role.  I think this style has created a healthy competition within the Easy Taxi team and keeps everybody motivated.
  How do you envision Africa’s growth in the next decade, especially Nigeria? What do you think about the e-commerce movement in Nigeria?

Today, I believe that Africa is already the most exciting place to work in terms of the opportunities.  Over the next decade, Africa is forecasted to be the fastest growing region in the world and Nigeria is set to be a central part of this boom.   The exponential growth is largely due to the commodity boom across the continent but I strongly believe that the main driving factor is now and will continue to be the small and medium-sized businesses that are springing up all over the continent.

I think Nigeria’s population is our biggest asset and policies such as the Central Bank’s cashless economy and the democratisation of the Internet all contribute to the e-commerce growth in the nation..

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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Wine Marketing: Will IDL Change Game with Chapeau

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Read Time:2 Minute, 26 Second

Nigeria’s growing wine market is daily attracting more international brands, especially from South Africa. Expectedly, this has led to stiff competition among wine makers and marketers.  But the European and South African wine brands seem to be the leading players in the market.

For the South Africans, they are investing heavily in the market with the belief that they can make an impact and win over their European counterparts.
Enters Chapeau
In another move to give consumers of wines another experience, Intercontinental Distillers Ltd has introduced Chapeau, another brand from South Africa into the market.

The new wine, which was said to be made from natural grapes, would, according to the Managing Director, IDL, Mr. Patrick Anegbe, give Nigerians a new experience and better state.  
Anegbe said IDL had been able to introduce a good natural wine made from real grapes as against many other wines which are synthetic.  He added that a lot of wines in the market were made of flavor, alcohol, sugar and addictive.

Brand Manager, Chapeau, Mrs. Chioma Alonge, emphasised the goodness in grape which is the main ingredient of Chapeau. She said:   “Chapeau is made from real grapes which are good for human heart as they lower blood pressure. A glass of Chapeau is a glass of goodness which is good for the heart”
She further stated that Chapeau which literally means in French “I doff my hat” comes in three variants Merlot, Rose and Cabernet Sauvignon.

Speaking on what gave her the confidence that the product will succeed in Nigeria, Alonge emphasised the experience of the South Africans in wine making and the quality of what is coming from the company. “South Africa has been making wines for over 300 years and they are leaders in many markets. Before Chapeau, they have made waves with many brands and they are still doing so. Again, the market spread of IDL will be an added advantage. IDL has a good marketing network and this will help us to push the new product,” she said.

How it All Started
South African wine makers first started eyeing the Nigerian market after the global financial crises of 2008/2009 led to a fall in demand from their established markets in Asia and the Americas. They are also attracted by Nigeria’s growing wine culture, large population, and GDP growth rate which averaged seven per cent per annum in the last five years.
Most South African wine makers enter the Nigerian market through partnership with local distributors, major hotel chains as well as retail outlets. Some Nigerian entrepreneurs also order custom-made wines with their own chosen name brands from South African producers.

According to Alonge, the South African wine producers have had to adjust their products to suit the Nigerian palate, which is sweeter than average, and Nigerian foods which are spicier.

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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CADBURY NIGERIA PLC: Stiffer competition and declining finance income dampen 3-month results

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Read Time:5 Minute, 39 Second

Cadbury Nigeria Plc is a manufacturer and seller of fast-moving consumer goods in Nigeria. The Company’s confectionery and food drinks segment produces and sells confectionery products and food drinks under the Bournvita, Tom Tom, Ahomka ginger, Hacks, and the Buttermint brands. In addition, Cadbury Nigeria’s intermediate Cocoa Products segment produces and sells cocoa powder, cocoa butter, cocoa liquor, and cocoa cake.

STRONG COMPETITION STIFLES REVENUE GROWTH IN THE FIRST QUARTER 2014
The financial performance of Cadbury Nigeria Plc for the full-year ended December 2013 was commendable in the face of a tight monetary environment, leading to low consumer purchasing power and heightened competition in the consumer goods sector of the economy.  Although revenue growth was moderate at circa 7% year-on-year, after-tax profit grew significantly by 79.79% due to the Company’s success at operating cost management. However, the result for the 3 month period ended March 2014 indicated a stark departure from the positive performance of the 12 months to December 2013. The Company’s revenue declined by double-digits in March 2014 and a reversal of the 2013 cost control trend led to an even greater year-on-year decline in net income for the period.

For the first quarter ended March 2014, Cadbury Nigeria reported a decline of 17.24% in revenue to N6.92 billion from N8.36 billion at the end of the 3 months period ended March 2013. An increase in competition within the sector, continuing insecurity in the Northern region of the country, and a less favourable macro-economic situation contributed to the Company’s performance during the period. Nevertheless, the Company was able to record a reduction in cost of sales, declining by 20.57% to N4.06 billion in March 2014, from N5.11 billion in March 2013. According to the Company’s management, the reduction in sales cost is in part a testament to the effectiveness of the new Multi-Energy Vapour Absorption Chiller, which utilizes exhaust fluent gas that was formerly discarded.

However, despite the decline in sales costs, gross profit fell by 12.00% to N2.86 billion in the first quarter ended March 2014, from N3.25 billion in the corresponding period of 2013, a lower decline compared to the reduction in revenue due to more decline in cost of sales.

LOWER PROFITABILITY DUE TO DECLINE IN NET FINANCE INCOME
Pre-tax profit declined by a more marked 31.31% relative to the reduction in gross profit to N1.15 billion in March 2014 from N1.68 billion in March 2013. This was principally due to the decline of 43.64% in net finance income to N274.59m in March 2014 from N487.23m in March 2013. Although no finance expenses were charged to the Company’s books in the current period, a decline of 46.90% in finance income to N274.59m from N517.12m led to the significant reduction in net finance income.

Net income also declined but by at a slightly slower rate than pre-tax profit, as it fell by 29.41% to N805.81m at the end of the first quarter of 2014 from N1.14 billion in the corresponding period of 2013, thanks to a decline in tax expenses by 35% to N345.35m from N534.37m over the period. Effective tax rate also dipped slightly to 30.00% in the current period from 31.89% in the period ending March 2013. Earnings per share (EPS) however grew by 19.44% to N0.43 in March 2014 from N0.36 in March 2013 as a result of capital reduction exercise carried out by the Company in 2013 thereby reducing the Company’s outstanding shares by 40% to 1.88 billion shares from 3.13 billion shares over the period.

With regards to profit margins, the gross profit margin increased from 38.85% in March 2013 to 41.31% in March 2014 due to the reduction in cost of sales while pre-tax and net income margins both decreased to 16.63% and 11.64% from 20.04% and 13.65% respectively over the period, as the lower net finance income for the period applied downward pressure on pre and after-tax profit margins.

RETURNS ON COMPANY RESOURCES REDUCE AS TOTAL ASSETS AND SHAREHOLDER’S EQUITY DECLINE
The Company’s total assets declined by 28.76% to N30.76 billion as at March 2014 from N43.17 billion at the end of December 2013. The decline was a result of the reduction of 79.13% in cash and cash equivalent of N3.70 billion from N17.75 billion over the period. The cash was used to buy-back some of the Company’s outstanding shares during the capital reduction exercise leading to a decline of 46.23% in shareholders’ to N12.90 billion at the end of March 2014 from N23.99 billion as at December 2013.

Due to a similar rate of decline in the Company’s net income and total assets, return on assets (ROA) remains flat at circa 2% between December 2013 and March 2014 while the Company’s return on equity (ROE) benefited from the greater decline in equity than in net income, growing to 6.25% as at March 2014 from 4.76% as at March 2013.

WE RECOMMEND A HOLD
The 2013 operating year for consumer goods companies was one beset by economic challenges such as the continued poor state of transport infrastructure, insecurity, high input costs and unreliable power supply. Despite the harsh environment over the 12 month period in 2013, turnover grew due to sustained demand for key Cadbury’s brands that hold leading positions in their respective market categories. Nonetheless, decreasing market share due to strong competition in the first quarter of 2014, and an inability to control costs more meaningfully over the period, indicate to us that the 2014 financial year is unlikely to repeat the marked net income growth recorded in 2013.

Factoring in our expectations for the current financial year, with respect to intense rivalry in the sector, and insufficient evidence of the Company’s capacity to control costs substantially, we revise our full-year December 2014 revenue and net income estimates to N32.15 billion and N6.51 billion respectively. As such, we project a 6-month EPS of N3.47. With the aid of the justified P/E valuation method and a peer P/E ratio of 24.44x, we estimate a 6-month stock price of N84.81, which represents an upside of 6.01% on the current stock price, and results in our revised HOLD recommendation on the shares of Cadbury Nigeria Plc.

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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Rwanda: Global Personalities Name Baby Gorillas

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Last week Rwandans celebrated the birth of 18 baby gorillas at the 10th anniversary of Kwita Izina, the annual gorilla naming ceremony. The event was held at the foothills of the Virunga Mountains in Kinigi, Northern Rwanda, and brought together more than 40,000 residents of Musanze District and visitors from all over the world. This year’s Kwita Izina was held under the theme: “A Decade: Conserving-Empowering-Growing.”

This year’s Kwita Izina attracted over 470 international guests from around the world including Kenya, Nigeria, China, Uganda, Tanzania, Somalia, Russia, Japan, South Sudan, South Africa, Gabon, Ghana, among others. Publisher of ATQ magazine, Ikechi Uko, was among dignitaries who got to name a gorilla.

The CEO of the Rwanda Development Board, Ambassador Valentine Rugwabiza said: “We celebrate, for the tenth time, the growth of the gorilla family by naming 18 baby gorillas born over the last year, bringing the total population of the endangered species to over 600 in the Virunga Transboundary Parks.”

Kwita Izina is inspired by the ancient Rwandan tradition of naming babies soon after they are born. The ceremony has transformed from being a local event in 2005 to becoming an international gorilla conservation event that also promotes tourism. Early this year, Kwita Izina won second prize in the UNWTO Ulysses Award for Innovation in Public Policy and Governance.  In the nine years since the event was established, 161 gorillas have been named in a celebration of nature and the communities who protect the majestic mountain gorilla.

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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BA Trials ‘Happiness Blanket’ to Improve Cabin Service

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British Airways is trialling a high-tech blanket that monitors brainwaves and changes colour to show when passengers are at their most relaxed in the sky. The airline hopes the “happiness blanket” will enable it to provide an improved in-flight service on long-haul journeys.

The garment, which is woven with fibre optics, works by using neurosensors to measure a person’s brainwaves. It then changes colour, from red to blue, to show when they are at their most relaxed and meditative. The idea is for cabin crew to then alter their routine — from changing the timing of meals, what food is served and the types of films shown — to best suit passengers.
Recently, volunteers onboard a BA189 Dreamliner service from Heathrow to New York were among the first to try out the happiness blanket.

According to a BA press release which explains in detail how the technology works, “The blankets are woven with fibre optics that change colour based on the output of the sensors. When the user is tense the blanket turns red and the when the user is relaxed, the blanket turns blue, allowing us to monitor the traveller’s sleep and relaxation patterns during a flight.
Based on its first trial flight, BA found that the main fluctuations took place when passengers used the in-flight entertainment and during inflight dining.

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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NIGERIA: Lagos Airport Hotel’s Ramadan Offer

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 Lagos Airport Hotel

In celebration of this year’s Ramadan, the Lagos Airport Hotel Ikeja, has prepared offers for Muslims in the country through ia sales promo tagged ‘Ramadan Season Booster’ (RSB) which is on for the period of Ramadan.

According to a statement last week, guests will enjoy 20 per cent off accommodation, free Sahur (sari) to all Muslim lodgers at the hotel restaurant, free fruits to all lodgers to break their fast, Tafsir at the hotel mosque for all interested guests and the general public, attractive corporate discount for block-booking and free branded gift to all who stay for four consecutive nights.

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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