Recently, there have been a number of funding announcements for investments along the FMCG value chain in Sub-Saharan Africa. These include investments in ecommerce and accompanying investments in distribution channels which are expected to improve the business prognosis for existing and new manufacturers, improve efficiency and reduce revenue leakages.
I would say yes, within the context of revenue growth when looking at our coverage companies. For major players in the space, we can also see bottom-line resilience, and this is important to note especially given the significant headwinds these companies have faced during the period. Apart from this, there has also been evidence of expansion – I mean a drive towards achieving scale – across market sub-segments within the region.
Another challenge would really be bottom-line preservation. While turnover has largely been in line with expectations, and revenue is stable and growing, maintaining historical margins has been a real challenge. A major reason for this is that operational expenses have increased astronomically, and you would agree with me that this is not news. Energy prices have skyrocketed for example, and food prices have behaved in a similar manner and so on.
Belgique Dernières Nouvelles, Belgique Actualités
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