Company news in brief

Naspers says earnings to fall 10-16%

South African media and e-commerce behemoth Naspers Ltd said on Thursday its core headline earnings per share (HEPS) for the full year ended March are likely to drop by 10-16%.

South Africa's most valuable company said its core HEPS is likely to fall between US$0.78 and US$1.23, down from US$7.57 in 2019. It will be announcing its results on June 29.

The core earnings per share of the company will also come down for the year due to the Prosus listing in September which led to a larger base of shareholders coming into the company, Naspers said.

Its listing of Africa's biggest pay-TV company MultiChoice Group Limited in 2019 financial year will also impact earnings, it said.

Naspers, which also runs South Africa's biggest e-commerce firm takealot.com, cautioned that it might see an impact of the coronavirus pandemic on its annual results for the current financial year ending March 2021.

But added that the company has "sufficient liquidity to provide our businesses with the appropriate level of funding as well as invest in external opportunities." – Nampa/Reuters

SABC preparing to lay off 600 workers

The South African Broadcasting Corporation (SABC) said on Thursday it had issued notices to its employees warning of a likely 600 lay-offs, as the indebted state firm looks to stabilise its finances.

"The notice follows the launch of the SABC's new Target Operating Model - a strategic renewal initiative aimed at transforming the corporation into a financially sustainable, self-sufficient and fit-for-purpose public broadcaster," it said in a statement.

It made a net loss of R482 million in the 2018/19 financial year, compared with a net loss of R744 million in 2017/18. The government gave the broadcaster R3.2 billion this year to pay its bills.

Its staff of 3 167 permanent employees and 1 500 independent contractors remains amongst its biggest expenditure items.

The SABC's income has been chipped away by the growing loss of viewers and advertising revenue to private satellite TV provider Multichoice and streaming services such as Netflix. – Nampa/Reuters

Unions reject SAA rescue plan over job cuts

Two South African unions on Friday rejected job cuts proposed to rescue South African Airways, which has cost the government more than a billion US dollars to stave off bankruptcy and will cost it about half that again to reform.

The current plan, which would involve laying off about 90% of staff leaving just 1 000 jobs, will cost at least R10 billion. That is on top of the R20 billion that has been spent just keeping the airline afloat in the past three years.

But The National Union of Metalworkers of South African (NUMSA) and the South African Cabin Crew Association (SACCA), angered by what they said was mismanagement of SAA by executives, on Friday rejected staff severance packages as too small and job cuts as too wide-ranging.

NUMSA is one of the biggest unions in South Africa, a country in which trade unions wield sizeable political power since the national umbrella union is an alliance partner of the ruling party.

"These workers cannot be sacrificial lambs and we cannot allow for a situation where they must pay for this crisis," the two unions said in a statement. The unions said they would seek redress in labour courts. – Nampa/Reuters

J&J drops skin-whitening creams

Johnson & Johnson has decided to stop selling skin-whitening creams popular in Asia and the Middle East, it said on Friday, after such products have come under renewed social pressure in recent weeks amid a global debate about racial inequality.

Johnson & Johnson will stop selling its Clean & Clear Fairness line of products, sold in India, a spokeswoman told Reuters. It was reported earlier this month that it would drop its Neutrogena Fine Fairness line, available in Asia and the Middle East.

"Conversations over the past few weeks highlighted that some product names or claims on our dark spot reducer products represent fairness or white as better than your own unique skin tone," Johnson & Johnson said. "This was never our intention.”

Creams that promise to lighten or brighten skin are marketed primarily to women by the world's biggest personal care companies, including Unilever, Procter & Gamble and L'Oreal under their respective brands Fair & Lovely, Olay and Garnier. Those companies did not immediately respond to a request for comment.

About 6 277 tonnes of skin lightener were sold worldwide last year, according to Euromonitor International, including products marketed as anti-aging creams targeting dark spots or freckles. – Nampa/Reuters

Barrick Gold alerts authorities after fake news

Barrick Gold on Thursday said there is "absolutely no truth" in a news release circulated on social media in Zambia claiming the gold miner sold its Lumwana copper mine.

The fake press release, dated June 15, claimed Barrick had sold its Zambian copper mine to Metalinvest Capital Corporation and Zambia's National Pension Scheme Authority (NAPSA) for US$895 million in cash.

Barrick was last year seeking buyers for its Lumwana copper mine, but in February chief executive Mark Bristow told Reuters he would not necessarily sell it, and might instead look for a partner in Zambia or a deal with a copper processor.

"We don't know who's behind this and we have alerted the relevant securities regulators and law enforcement authorities," a Barrick spokeswoman told Reuters in a statement.

NAPSA - a government-owned pension fund - issued a statement saying it had not entered into any such transaction nor been involved in any such discussions. – Nampa/Reuters