COMPANY NEWS IN BRIEF

PPC reports flat annual performance

Cement maker PPC, has appointed Mokate Ramafoko as its group managing director for industrial and innovation, as part of its bid to improve cost competitiveness.

The group, which published its results for the year ended 31 March 2022 on Monday, said Ramafoko who is the former head of PPC International, will be responsible for industrial performance, new business and decarbonisation.

The new managing director will report directly to CEO Roland Wijnen.

"As PPC experiences a normalisation of cement demand in South Africa following the post-Covid-19 spike, the group, will redouble its efforts to improve cost competitiveness through improved industrial performance and operational excellence," PPC explained.

The cement group’s annual performance remained flat, with its headline earnings per share staying at 2021’s 3 cents. And just like in 2021, PPC did not declare a dividend for 2022.-Fin24

Naspers, Prosus hit by earnings decline

Naspers and its subsidiary Prosus will slowly be selling off parts of its stake in Chinese tech giant Tencent in order to fund an open-ended programme to repurchase its own shares.

This comes as Naspers reported a 40% drop in core headline earnings to US$2.1 billion, and Prosus a 23% reduction to US$3.7 billion for the year ended March 31, due to "a period of slower growth at Tencent as it adapted to regulatory changes in China." Group trading profit declined by 10% to US$5 billion, while it reported group revenue growth of 24% to US$36.7 billion.

"The board of Naspers intends to declare the dividend as soon as practicable," the group said in a separate update.

A crackdown on technology companies in China has battered Tencent, and this in turn has weighed on Naspers and Prosus, who currently have a 28.9% stake in the company after selling 2% in 2021. Naspers share price is currently down nearly 24% since January, and fell over 35% since June 2021.

Naspers was however up over 11% in early Monday trading, while Prosus rose over 22% before levelling off at nearly 12%. -Fin24

Nissan shareholders reject proposal

Japan's Nissan Motor Co Ltd on Tuesday rejected a shareholder proposal at its annual general meeting (AGM) that would have led to the disclosure of a decades-old agreement with 43% stakeholder Renault SA.

Ahead of the AGM, one investor proposed designating Renault as Nissan's parent company which by law would force the publication of the agreement which stipulates the automakers' capital and business alliance.

Lack of publication prevents shareholders discussing the alliance which consequently remains "unequal", the investor said. Nissan owns only a 15% non-voting stake in Renault.

Observers expected opposition from the French automaker to scupper the proposal. Still, Nissan last month said it would disclose the agreement's content in its annual securities report to the extent it does not violate a confidentiality obligation.

Full disclosure of the Restated Alliance Master Agreement would reveal the scope of the 23-year-old tie-up, formed when Renault rescued Nissan from the brink of bankruptcy. The deal has long been the source of tension as it allows Renault to increase its involvement in Nissan's management. -Reuters

Heineken to expand Mexico operations

Heineken will build a 1.8 billion peso, or US$90 million, can manufacturing plant in the northern Mexican state of Chihuahua near its brewery in the town of Mequoi, the company said on Monday.

The plant, Heineken's seventh in the country, will bring around 120 direct jobs after opening and around 150 during the construction phase, it said in a press release.

The beermaker said it had seen increased demand for cans in the country, as other national alcoholic drink producers like Becle, Jose Cuervo's parent company, say they are struggling to obtain glass to bottle their spirits.

Around 40% of beer in Mexico is currently made in cans, while the rest is made in glass bottles, according to the National Chamber of Beer and Malted Drinks. -Reuters