Nigeria’s leading diversified conglomerate, Transnational Corporation of Nigeria Plc (Transcorp) is leaving the juice concentrate market.
In 2011, the trio of Teragro, Transcorp and the Benue State government partnered to establish the Teragro Benfruit juice concentrate plant with a capacity of 26,500 metric tonne.
The first of its kind in Nigeria.
They have since pioneered the use of modern agribusiness technology in Nigeria, developing, manufacturing and distributing high-quality consumer goods for local and international markets.
Managment disclosed this during the company’s investor conference held on Tuesday.
The firm adduced the decision to imported concentrate being cheaper than local concentrate. Terragro produced pineapple, mango and orange concentrate.
Recall that in 2015, Coca-Cola launched a new line of fruit juice made from concentrate: Five Alive Pulpy Orange, and announced Terragro, agribusiness subsidiary of Transcorp as the sole local-concentrate sourcing partner for the product.
But with Teragro contributing a meagre 0.03 percent to the group’s revenue and 0.21 percent to the total assets, the management of Transcorp feels it is necessary to divest the business venture.
Results for the half year ended June 2018 show revenue increased from N34.1 billion in 2017 to N54 billion in 2018. Profit before tax jumped from N4.5 billion in 2017 to N11.9 billion in 2018. Profit after tax also surged from N4.1 billion in 2017 to N10.8 billion in 2018.