COMPANY NEWS IN BRIEF

Heineken sells its Russian operations for R20Heineken said it completed a deal to sell its assets and leave Russia, becoming one of the few consumer companies to successfully withdraw since Vladimir Putin’s government shifted rules to make exiting the country more difficult. The Dutch firm sold its operations, including seven breweries, to Russia-based packaging and consumer goods business Arnest Group for €1 (R20) in a deal that will result in a €300 million (R6 billion) loss. The transaction has received all required approvals, Heineken said in a statement, and concludes a process started in March 2022. There is no buyback or call option to return to Russia, and the sale and financial loss will have a "negligible impact" on Heineken’s earnings per share, the company said. Its full-year outlook won’t change, it said.Putin’s signing of a decree in April that allows for temporary state control over the assets of companies or individuals from unfriendly states — which includes the US and its allies — has complicated efforts by top consumer companies to exit Russia. Heineken’s successful departure stands in contrast to rival Carlsberg A/S, which saw plans to sell its business in the country upended by the government’s seizure of operations in July. Meanwhile, Anheuser-Busch InBev continues to hold an interest in a Russian beer maker."This was incredibly complex," Heineken’s Chief Executive Officer Dolf van den Brink said on a call with reporters. "There was a real risk of prosecution for our people and a real risk of nationalisation."Heineken has been facing pressure from consumers to leave Russia, which had accounted for about 2% of global sales, and had stated its intention to do so more than a year ago without profiting from a transaction. -Fin24Nestlé's Nesquik to be discontinued in SASouth Africans who enjoy Nestlé's flavoured milk drink Nesquik will be disappointed to learn that it soon won't be available locally anymore. Nestlé South Africa has decided to discontinue Nesquik chocolate and strawberry (250g and 500g) from 21 August 2023. The company said this is owing to a drop in sales and lower demand for the product. "Nesquik will no longer be produced in South Africa and thus discontinued. Nestlé understands that this may disappoint some consumers," the company said. Nestlé said it would continue producing its Milo, Hot Chocolate and Cocoa drinks. "These brands have shown remarkable performance and consumer loyalty, making them the focus of Nestlé's efforts to build a healthier and sustainable business for the future," it said. Takudzwa Mupfurutsa, business executive officer: dairy, Nestlé East and Southern Africa, said: "Delighting consumers is at the core of Nestlé's mission, and we are excited to announce our strategic decision to focus on our key brands."We remain committed to bringing innovation to the Cocoa Malt Beverages category, and we are eager to improve and introduce new products that will be hitting the shelves soon."We would like to express our deepest gratitude to our consumers for their unwavering support throughout the years," said Mupfurutsa.-Fin24AngloGold Ashanti mothballs Brazil mineAngloGold Ashanti said it was placing its loss-making Córrego do Sítio mine in Brazil into care and maintenance, while in a separate announcement it said it has appointed industry veteran Richard Jordinson as its new chief operating officer (COO).The Brazilian mine has generated operating results characterised by poor production and costs that remain well above the gold price, the group said on Friday, reporting negative free-cash flow of $30 million (about R565 million) in the first six months of the year. The mine has been in operation since 1989 and accounted for about 2.4% of the group's first-half production, or 30 000 ounces.AngloGold, which sold off its last operational assets in South Africa in 2020, and recently moved its listing to New York, also said on Friday it had appointed Jordinson as COO with effect from October - replacing Marcelo Godoy, who has been the interim COO since July, following the retirement of Ludwig Eybers. Jordison brings 38 years of industry experience to this role, earned across the gold, iron ore, nickel, zinc and lead mining sectors, AngloGold Ashanti said.He joined the group in 2012 as general manager of Sunrise Dam in Australia. In April 2017, Jordinson was appointed general manager at Geita Gold Mine, AngloGold Ashanti’s largest producing asset, where he led the team in Tanzania for more than four years. During that period, Geita successfully transitioned to underground production across three separate mining fronts, established a new open-pit mine and almost doubled mining reserves.-Fin24Northam declares first dividend in a decadeNortham Platinum has declared its first dividend in over a decade of R2.4 billion or R6 per share, resulting from the disposal of its stake in Royal Bafokeng Platinum. It has also established a dividend policy of a minimum of 25% of headline earnings and will buy back R1 billion of its own shares.The platinum group metals (PGM) miner, valued at about R87 billion on the JSE, released its financial results for the year ended in June on Friday, reporting a 3.8% rise in operating profit to R15.4 billion.A strong operational performance from its mines offset weaker metal prices, with its equivalent refined metal from its own operations rising 13% to 809 775 ounces. Mining inflation remains well above consumer price index levels, with chemicals, steel components, explosives and fuel all increasing well above quoted inflation, the group said, with its cash cost per refined ounce rising almost 13%.Northam CEO Paul Dunne said that accepting Impala Platinum's cash and share offer to buy out its near 35% stake in RBPlats had significantly strengthened the group’s balance sheet and liquidity position, which in turn has enabled the group to declare its first dividend in over 10 years.Northam said the RBPlat sale had strengthened the balance sheet and liquidity position, with net debt falling R9.4 billion from about 16 billion. The group received R9 billion in cash from the disposal, while it has also sold more than 90% of its Implats shares, bringing in R2.4 billion.-Fin24ADvTECH hikes dividend by 30%Private education group ADvTECH, which has brands such as Crawford and Trinityhouse, has hiked its interim dividend 30% as strong enrolment growth and fee increases across its schools and tertiary portfolio helped deliver double-digit revenue and profit growth.The private education company's group revenue rose 16% to R3.9 billion in the half year to end June, thanks to "consistent enrolment growth in both the schools and tertiary divisions". It was also boosted by increased business activity in its resourcing division. Adjusted operating profit grew 23% to R754 million with its margin improving to 19.2% from 18.1%, while normalised earnings per share rose by a quarter to 84.3c. The company's interim dividend came in at 30c, compared with 23c in the same period last year.CEO Roy Douglas said in a statement that ADvTech's strong results were due to a "solid contribution from all the group's operating divisions with improved margins across the board"."Our schools and tertiary divisions benefitted from good enrolment growth, moderate fee increases and enhanced operating leverage, while we continued to reap the rewards from our rest of Africa investment in our resourcing division."-Fin24

COMPANY NEWS IN BRIEF

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Namibian Sun 2025-11-05

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COMPANY NEWS IN BRIEF

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Namibian Sun 2025-11-05

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