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Cameroon: SEMC sees positive net result for 2019, after three loss making years

Cameroon: SEMC sees positive net result for 2019, after three loss making years
  • Comments   -   Wednesday, 12 June 2019 19:34

(Business in Cameroon) - Cameroon’s mineral water company SEMC is expecting to achieve a positive net result of XAF410 million this year. The information was disclosed during the company's combined general meeting held May 15 in Douala.

To achieve this result, SEMC is relying on a decline in its operating expenses, the growth of the mineral water market in Cameroon in 2019 and the recovery of its market share. On this last aspect, Semc is focusing on boosting sales of its “Vitale” brand. It is expecting sales to increase by 21% and production by about 35%.

These positive prospects may explain the decision taken by shareholders, during the general meeting, not to consider the early dissolution of the company, in accordance with the provisions of Article 664 of the Ohada Uniform Act on the Law of Commercial Companies and Economic Interest Grouping (EIG).

In view of these forecasts, 2019 should be the year of SEMC’s rebirth. The company has accumulated losses of about XAF2 billion over the past three years. It closed its 2016 and 2017 financial years with negative results of XAF316 and XAF936 million, respectively. At the end of 2018, despite a 3.8% increase in turnover to 6.4 billion, Semc's net income was once again negative (-XAF-799 million).

The reason for the decline of this company, which dominated the mineral water market in Cameroon until 2015, is that competition has become very fierce with the very aggressive return of Source du Pays. After being off the market for a few years, this company finally took over the leadership in the local mineral water market in 2016.

Brice R. Mbodiam

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