By Peter Egwuatu
There are indications that AG Leventis Plc will soon raise fresh capital to boost its business and turn around its dwindling performance occasioned by the economic meltdown. The Executive Vice Chairman/ Chief Executive Officer AG Leventis, Michael Economakis confirmed to Vanguard that plans are underway for the company to inject fresh capital given the present low economic activities in the country.
However, he said “Very soon we will disclose how much we intend to rise and the method of raising the fund. We are still discussing.”
Meanwhile, speaking at the company’s fact behind the figures on the Nigeria Stock Exchange (NSE) Economakis 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 find and we will be able to expand our products portfolio”, he said.
While speaking on sectors of strategic priorities of the company’s, he said “ Fast moving consumer goods, automobile, agriculture and real estate are major areas the company is targeting to develop in the next two years. He said AG Leventis is discussing with foreign investors to inject new capital into fast moving consumer goods sector of its businesses.
He said the new capital will aid the company in expanding their product portfolio into some richs products with a potential long term technical service partnership with Pick n Pay, one of the two retailers in South Africa. On automobile, he said the company commenced production of vehicles from mid 2015 and would expand it plans to assemble for other distributors in the region.
Meanwhile, AG Leventis revenue rose by 9 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. Total operational expenses increased by 12 per cent in half year 2016 from N1.269 billion to N1.425 billion, while profit before tax for the period declined by 298 per cent to close at negative N494 million from N249 profit of 2015 half year.