Bowler hints at SoftBev share sale
Market watchers have been urging company to act at soft-drink bottling associate offsetting plastics-packaging operations gains
Perennially profitable plastics packaging specialist Bowler Metcalf has hinted at selling its investment in loss-making soft-drink bottling associate SoftBev. In a commentary accompanying year to end-June results released on Friday, Bowler CEO Friedel Sass said the management was "critically appraising its continued involvement in the beverages business". Softbev was formed about two years ago with the merger of Bowler-controlled Quality Beverages and Softline. SoftBev reported a R93m loss, prompting Bowler to take a sizeable pretax impairment on its 43% stake in the bottler of brands such as Jive and Cooee. Market watchers have been urging Bowler to take action at SofBev, which is offsetting gains made by the core plastics packaging operations. In the year under review, the packaging segment increased revenue to R78m, from R55m in 2016, with operating margins improving markedly to 16%, from 11.5%. Sass conceded SoftBev had been cause for much speculation, but argued that the compan...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.