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Leading food and allied packaging group, Kellogg recently released its Q1 2018 financial statements results which indicated strong footing in the industry with improvement in net sales performance, driven by key business brands across the portfolio.
Business Hilights recalls that Kelloggs-Tolaram Nigeria Limited is a joint venture between the Kelloggs and the Tolaram group. The joint venture was established in 2016 to develop snacks, breakfast foods, and noddles across the West African region.
As part of the agreement, Kelloggs also acquired a 50% stake in Multipro- the largest distributor of food products in the sub-region.
It also has a right to acquire a stake in Tolaram Africa Foods (which holds a 49% stake in Dufil Prima foods).
Details of the results show further that the net sales grew by 4.7% in the quarter from $3.25 million in Q1 2017 to $3.40 million in Q1 2018.
Operating Profit also increased from $280 million in Q1 2017 to $510 million in Q1 2018. This represents a massive growth of 81.7%.
Kellogg also revealed plans to expand its interest in business partnerships with Tolaram in West Africa.
The company announced it is investing a total of about $420 million in addition to its joint-venture equity interests.
Kellogg’s Chairman, and Chief Executive Officer, Steve Cahillane, noted that the expansion in emerging markets is an important element of the company’s growth strategy.
According to him, “Africa offers incredible growth opportunities, and our experience partnering with Tolaram over the past couple of years have confirmed that we have a strong relationship, attractive brands, local expertise, and a proven business model. Our additional investment is a statement of confidence in this venture.”