MIRA
INFORM REPORT
|
Report Date : |
23.06.2008 |
IDENTIFICATION
DETAILS
|
Name : |
OBEGI CONSUMER PRODUCTS SAL |
|
|
|
|
Formerly Known As : |
SOCIETE DES
PRODUITS ALIMENTAIRES ET MENAGERS YORDAN OBEGI SAL |
|
|
|
|
Registered Office : |
Zouk Mosbeh, Obegi Building, Kesrouane |
|
|
|
|
Country : |
Lebanon |
|
|
|
|
Date of Incorporation : |
1958 |
|
|
|
|
Com. Reg. No.: |
7719 |
|
|
|
|
Legal Form : |
Lebanese Joint Stock Company |
|
|
|
|
Line of Business : |
Importers,
Wholesalers and Distributors of General Consumer Products including
Foodstuff, Beverages, Household Cleaning Products, Cosmetics
and Toiletries |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD
250,000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
SUBJECT
OBEGI CONSUMER PRODUCTS SAL
Trading
As
OCP SAL
OCP
Formerly
SOCIETE DES
PRODUITS ALIMENTAIRES ET MENAGERS YORDAN
OBEGI SAL
OBEGI FOODS SAL
ADDRESS
Location:
Area: Zouk Mosbeh,
Building: Obegi Building
Town: Kesrouane
Country: Lebanon
Telephone: (+961) (9) 220361 / 220362 / 220363
Fax: (+961) (9) 223397 / 223398 /
224364
EMail: obegi@ocph.com
nadim.aouad@ocph.com
Postal Address:
P.O.Box: 11-2652
Town: Beirut
Country: Lebanon
Branch Address:
Area: Nahr El Mott, Obegi Compound
Building: Amaret Chalhoub, Ceasar Assouad
Building
Town: Beirut
Country: Lebanon
Telephone: (+961) (1) 890386 / 894202
Fax: (+961) (1) 604547 / 604548
MANAGEMENT
George Bechara
Obegi
Chairman & Managing Director
Frank-Charles Frank
Faraj
Co-Managing Director
Awni Joseph Khoros
Co-Managing Director
Riyad Bechara Obegi
Member of the Board
Yordan Bechara Obegi
Member of the Board
Camille Mikhael
Hajjar
Finance Manager
Nadim Aouad
Accounts Manager
Angela Karam
Human Resources
Manager
Dany Khairallah
Accountant
PROFILE
Legal Form: Societe Anonyme Libanaise (SAL)
/ Lebanese Joint Stock Company
Societe
Anonyme Libanaise (SAL) / Joint Stock Company
-----------------------------------------------------------------------
- A
founder of an SAL cannot participate in the company if he has been declared
insolvent and has not been rehabilitated in the past 10 years or has a criminal
record in Lebanon or abroad, particularly with regard to crimes relating to
fiscal matters.
- A
SAL has a minimum of three shareholders
- A
SAL is required to have a minimum capital of at least LBP30 million (USD
20,000), with one-
quarter
paid up at the time of registration.
Capital can consist of cash or in kind.
- It
must have its' registered office in Lebanon.
- The
majority of board members must be Lebanese citizens.
- The
board of directors composed of at least three members and a maximum of 12.
- The
chairman cannot be the director of more than six Lebanese companies. If he is
over 70, that
number
is reduced to two.
-
There are no limits on the amount of capital that can be held by foreigners,
with exceptions of
companies
engaged in real estate, insurance, media and banking.
The
company's head office must be in Lebanon and a foreign-national chairman may
only hold office if he has a work permit (this rule does not apply to the
chairmen of banks, and offshore or holding companies, which are usually formed
as joint stock companies).
Generally,
the law does not place minimum requirements on the percentage of Lebanese
ownership of joint stock companies. However, if the company's objectives
include trading real estate in Lebanon, fifty percent (50%) of the company's
capital must be owned by Lebanese nationals. Furthermore, there are specific
ownership requirements relating to the purchase of real estate in Lebanon.
In
terms of tax liability, a joint stock company is subject to a ten percent (10%)
tax on its net profit and a five percent (5%) tax on the distribution of
dividends (See Tax discussion under Section II for more details).
Year Started: 1958
Date Registered: 14th November 1958 (Beirut Commercial
Register)
Membership No.: 482
(Beirut and Mount Lebanon Chamber of Commerce, Industry and Agriculture)
Excellent Grade
C.Reg.No.: 7719 (Beirut Commercial
Register)
History
Subject was originally started on 14th November, 1958 and
registered in 1959 under the name SOCIETE DES PRODUITS ALIMENTAIRES ET MENAGERS
YORDAN OBEGI SAL.
On 12th September, 1986 subject's name was changed to OBEGI
FOODS SAL.
On the 1st
June 1994, subject's name was again changed to the current OBEGI CONSUMER
PRODUCTS SAL.
All figures are in local currency unless stated. LBP
(Lebanese Pound)
Capital
3,000,000,000
(increased from 6,000,000)
SHAREHOLDERS
Name Holding
% Value
Frank-Charles Frank Faraj 25.00
% 750,000,000
(Lebanese national, Born in 1950
Civil Reg.
No. 86/Beirut
Resides at:
Ashrafieh Beirut)
Yordan Bechara Obegi 23.33 % 699,900,000
(Lebanese national of Syrian origin
Born in
1956 Civil Reg. No. 120 / Chiayh)
Riyad Bechara Obegi 23.33
% 699,900,000
(Lebanese national of Syrian origin and brother of
the above
Born in
1958 Civil Reg. No. 120 / Chiayh)
George Bechara Obegi 23.33
% 699,900,000
(Lebanese national of Syrian origin and brother of
the above
Born in
1965 Civil Reg. No. 120 / Chiayh)
Awni Joseph Khoros 05.00
% 150,000,000
(Lebanese national of Syrian origin
Born in
1953 in Damascus
Civil Reg.
No. 2 / Jdeideh)
TOTAL* 100.00
% 300,000,000
* Total may not add up due to
independent rounding.
GROUP(S)
Subject is a member of the Obegi Group of companies
which is headed by Obegi Holding SAL dealing mainly in consumer products and
household appliances and furniture.
Obegi
Group also includes:
BANQUE EUROPEENNE POUR LE MOYEN-ORIENT SAL
Town: Beirut
Country: Lebanon
Telephone: (+961) (1) 200505 / 200506 / 200507/
203375
Fax: (+961) (1) 330780 / 330781
EMail: bemosal@dm.net.lb
BEMO BANK SAL
Town: Beirut
Country: Lebanon
Telephone: (+961) (1) 992600 / 992601 / 992602 /
992603 / 992604 / 992605 / 992606
Fax: (+961) (1) 330780 / 330781
BYBLOS TEPPICH FABRIK SAL
P.O.Box: 11-2652
Town: Beirut
Country: Lebanon
Telephone: (+961) (1) 850771 / 850772 / 850773 /
850774 / 850775
Fax: (+961) (1) 850770 / 850888
EMail: byblos@inco.com.lb
CHEMIHOLD GROUP
Country: Lebanon
DOVE COSMETICS KFT
Country: Hungary
DOVE PROCESSING SAL
P.O.Box: 11-2652
Town: Jounieh
Country: Lebanon
Telephone: (+961) (1) 898141
Fax: (+961) (1) 601612
HENKEL KGAA
Town: Düsseldorf
Country: Germany
Telephone: (+49) (211) 7970
Fax: (+49) (211) 7984040
HENKEL LEBANON S.A.L.
P.O.Box: 11-2652
Town: Jounieh
Country: Lebanon
Telephone: (+961) (9) 220374
Fax: (+961) (9) 223317
HERMES TOURISM & TRAVEL SAL
Town: Beirut
Country: Lebanon
Telephone: (+961) (1) 202564 / 336366 / 327317
Fax: (+961) (1) 202564 / 336366 /
327344
INDUSTRIAL HOLDING SAL
Country: Lebanon
INKEMA SAL
P.O.Box: 11-2652
Town: Jounieh
Country: Lebanon
Telephone: (+961) (9) 220361 / 220362 / 220363 /
220364 / 220365
Fax: (+961) (9) 604547 / 6045478
KEMISOLV S.A.L.
Country: Lebanon
LIBAN TAPIS SAL
P.O.Box: 11-2652
Town: Jounieh
Country: Lebanon
Telephone: (+961) (9) 932645 / 932665 / 913767/9
Fax: (+961) (9) 932463
OBEGI AUDIOVISE SAL
P.O.Box: 11-2652
Town: Jounieh
Country: Lebanon
Telephone: (+961) (1) 899284 / 899285 / 893633
Fax: (+961) (1) 601608
OBEGI BETTER HOME SAL
P.O.Box: 11-2652
Town: Beirut
Country: Lebanon
Telephone: (+961) (1) 417005 / 410096 / 403112 /
410440 / 404620 / 404621
Fax: (+961) (1) 403112
OBEGI CHEMICALS SAL
P.O.Box: 11-2652 Zouk Mosbeh
Town: Jounieh
Country: Lebanon
Telephone: (+961) (9) 220361 / 220362 / 220363 /
220364 / 220365
Fax: (+961) (9) 223397 / 224364 /
604547 / 604548
OBEGI CONSUMER PRODUCTS HOLDING
P.O.Box: 11-2652
Town: Kesrouane
Country: Lebanon
Telephone: (+961) (9) 220361
OBEGI CONSUMER PRODUCTS SAL
P.O.Box: 11-2652
Town: Kesrouane
Country: Lebanon
Telephone: (+961) (9) 220361 / 220362 / 220363
Fax: (+961) (9) 223397 / 223398 /
224364
EMail: obegi@ocph.com
nadim.aouad@ocph.com
OBEIGI CHEMICALS COMPANY SAS
P.O.Box: 89
Town: Aleppo
Country: Syria
Fax: (+963) (21) 224 4255
SOCIETE FREDERIC HAKIM SAL
Country: Lebanon
SOCIETE LIBANAISE DES GRANDS ENSEMBLES (SOLIGRAN)
SAL
Country: Lebanon
UNIFERT HOLDING (MIDDLE EAST) SAL
P.O.Box: 11-6937
Town: Beirut
Country: Lebanon
Telephone: (+961) (1) 897942 / 890185 / 874668
Fax: (+961) (1) 897942 / 883205
UNIFERT SAL
P.O.Box: 11-6937 & 90-226
Town: Metn
Country: Lebanon
Telephone: (+961) (1) 892164 / 892165 / 892166 /
897763 / 897620 / 890185
Cellular : (+961) (3)
733400
Fax: (+961) (1) 874802
EMail: unimark@dm.net.lb
contact@unifert.com
UNITED CONTRACTING & SERVICES
Country: Lebanon
URETHANE HANDLING & DISTRIBUTION SAL
Country: Lebanon
WINE MAWASSEM TAANAYEL SAL
Town: Bekaa
Country: Lebanon
YORDAN OBEGI ESTABLISHMENT
Country: Syria
YORDAN OBEGI SAL
Town: Beirut
Country: Lebanon
YORDAN OBEIGI AND COMPANY
P.O.Box: 89
Town: Aleppo
Country: Syria
Fax: (+963) (21) 224 4255
OPERATION
Activities
Importers,
wholesalers and distributors of general consumer products including foodstuff, beverages,
household cleaning products, cosmetics and
toiletries
Operates one outlet, sales offices and one
large warehouse
The
following table demonstrates subject's market coverage in the local market
(Lebanon), as provided:
Trade Segment Total Subject's Direct Coverage
Key
Accounts (Retail) 56 56
Supermarkets 114 114
Mini
Markets & Groceries 784 784
Small
Groceries 15,083 5,000
Pharmacies 1,267 800
Wholesalers 237 150
TOTAL 17,541 6,570
Subject is located in an area which was not
bombarded by the Israeli army during the July/August War on Lebanon therefore
its operations were not stopped during the war.
Subject suffered some USD 2,000 of physical damages
due to debris falling on some of its transportation vehicles (lorries and
vans).
UKSIC Code: 51.9
UKSIC Name: General dealer
(wholesale)
Imports
From
Germany, France,
Hungary, United Kingdom, United Arab Emirates, Denmark and Cyprus
Agents
For
Al Wadi Al Akhdar,
Lebanon
Anchor, New Zealand
Bihar, Hungary
City Man, Germany
Creme 21, Germany
Der General, Germany
Deuteche Wrigle Gmbh, Germany
Diadermine, France
Dimple
Dove Corp, Belgium
Durex, United Kingdom
Emborg Foods, Denmark
Emborg Frozen, Denmark
Fa, Germany
Frico, Netherlands
H.J. Heinz Co., USA
Kolios, Greece
Le Chat, France
McDonald's Distribution Center American, USA
Meditol, Germany
Nice, Germany
Persil, Germany
Pril, Germany
Schwarzkopf, Germany
Somat, Germany
Tulip, Denmark
White Horse Scotch, United Kingdom
Wipp, Germany
Yardley Cosmetics, UK
Exports
To
Europe and Middle
East
No. of
Employees
1996 : 20
(subject) 1,000 (group)
2005 : 175 (subject) 1,500 (group)
2006 : 175 (subject) 1,500 (group)
Certification: ISO
9002
All
figures are in local currency unless stated. LBP (Lebanese Pound)
Annual Sales: USD
20,000,000
Annual Profit: Not Provided
Subject's
fiscal year ends 31 of December.
Subject is a company operating in a country where
annual accounts and financial results are not required to be filed or to be
made available to the public.
PREMISES
Subject occupies and
owns large warehouses including administration offices and an outlet in an owned
building shared by other affiliates and group members at the heading address as
well as a suite of offices located at Nahr El Mott Area of Beirut.
Subject has an overseas
representative office in Brussels, Belgium at the following address:
Street: 44
Avenue des Arts, Bt 7
Town: Brussels 1040
Country: Belgium
REFERENCES
Bank(s)
ABN Amro Bank NV
Ayanian Centre
Dora Boulevard
P.O. Box 113-5162
Beirut
Lebanon
Tel : (+961) (1) 894426 / 894520
Fax : (+961) (1) 601508
Bank Audi SAL-Audi Saradar Group
Ashrafieh Branch
Charles Malek Avenue
Sofil Center
Ashrafieh
Beirut
Lebanon
Tel : (+961) (1) 200250 / 200251 / 200252 / 200253 /
200254 / 200255
Fax : (+961) (1) 200955
Bank of Beirut & Arab Countries (BBAC)
Saint Nicolas
Ashrafieh
Beirut
Lebanon
Tel: (+961) (1) 201780 / 201781 / 331690 / 331599
Banque Saradar SAL
Hadife Building
Charles Malek Avenue
Ashrafieh Area
P.O.Box : 11-1121 / 11-3312 Beirut
Beirut
Lebanon
Tel : (+961) (1) 200260 / 200261 / 200262
Fax : (+961) 1) 200265
Standard Chartered Bank Sal
509 building,
Highway
Dbayeh (Metn)
Lebanon
Tel: (+961) (4) 542474 / 542485 / 542486 / 542487
Cellular:
(+961) (3) 676105
Fax: (+961) (4) 542494
Website: http://www.standardchartered.com
Trade Suppliers
Emborg Foods A/S
Hasserisvej 139
P.O. Box 75
Aalborg 9100
Denmark
Tel : (+45) (96) 376500
Fax : (+45) (96) 376501
Kolios S.A.
Thessalonikis - Langada Rd (14th km)
Langadas 57200
Greece
Tel : (+30) (239) 402 9031 / 402 9040 / 402 9000
Fax : (+30) (239) 402 9005
Website: http://www.kolios.gr
Tulip Food Company P/S
Tulipvej 1
Randers 8900
Denmark
Tel : (+45)
(89) 105000
Fax : (+45) ( 89) 105001
Website: http://www.tulip.dk
Website: http://www.kompass.com/c/tulipdk
COMMENT
Subject is a MEDIUM sized and well-established
company, started in 1958 by a group of local investors trading as importers,
re-exporters and traders of general consumer products.
Subject is member of
the regional Obegi Group of companies operating
mainly in Lebanon and Syria engaged mainly in food processing and general
consumer products trading.
Food & Beverage Industry - Lebanon
In Lebanon, investments in the food and beverage industries represent
more than 40% of the investments targeting the industrial sector, a ratio that
reinforces the sector’s key importance to the Lebanese economy.
According to 1998, the food and beverage industries sector represented
almost 20% of the total industrial units, 25% of the added value and 23% of the
industrial workforce. The agro-food output is estimated at USD 1 billion,
generated by 4,500 firms employing some 26,000 persons. Industries of the
bakery and pastry products are the most important in number (48%) followed by
the chocolate and sweets industries (22%). Also 70% of the food industries
employ less than 4 workers.
Latest available figure showed that around 824 new factories were
established in 2002 (against 599 in 2001), employing 6,721 persons (4,425 in
2001) and necessitating the investment of LBP 179 billion (LBP 105.1 billion in
2001). The industry represents 4.2% of the total exports (USD 64.7 million).
The main destination for the Lebanese food export is the Gulf countries
(60%), followed by Syria (21%), Jordan (10%), EU (2%) and Egypt (2%). The
geographic distribution of food exports shows that Lebanon main clients are
Saudi Arabia, United Arab Emirates, and Kuwait.
Company Size: MEDIUM
Business Trend: STEADY
Payments: NO
COMPLAINTS
Maximum Credit: USD
250,000
Lebanon (republic of) - country risk
analysis:
Lebanon
is an Arab League country with a population of 3,874,050 million (CIA, World
Factbook 2006). In 2005, Lebanon ranked 108th worldwide in terms of
GDP with USD 23.69 billion. As of April 2005, the country is on the World
Bank's list of severely indebted countries where debt accounts for 180.5% of
GDP.
Lebanon's
economy depends on Tourism, Services (such as Banking and Financial services),
and Trade. The country's major trading partners include Switzerland, Saudi
Arabia, UAE, USA, Jordan, Turkey, Italy, France, Germany, Syria, China,
Belgium, and the UK.
During
the four month period ending 30 April 2005 there was an overall rise in country
risk as witnessed in the following indicators: The period witnessed a 53%
decline in "Capital Inflows", from USD 1.86 billion to USD 986
million. The "Balance of Payments deficit" reached USD 1.425 billion
compared to USD 9 million for the same period in 2004, government revenues
declined. Debt servicing accounted for about 31.1% of budget and Treasury expenditures,
and for 43.8% of budgetary
spending,
and absorbed 41.5% of budgetary receipts and 39% of overall revenues.
The
loans-to-deposit ratio from the consolidated balance sheet of commercial banks
moved from 30.7% at end December 2004 to 32.7% at the end of April 2005.
Tourism activity was down 19.1% over the same period but up 20% and 9.2%
relative to similar periods in 2003 and 2004 respectively.
Following
the assassination of Prime Minister Rafiq Hariri in February 2005, increased
political risk and domestic uncertainties resulted in a sluggish economy. The
pullout of Syrian troops in May 2005 after a 30-year presence was welcomed by
the local and international communities. However, a series of explosions
targeting commercial areas and opposition leaders are halting the improvements
and putting more pressure on the economy. For the first time in 30 years,
parliamentary elections took place without Syrian presence and influence in
June 2005. The new parliament elected a new cabinet of ministers, which
analysts believe will face difficult challenges. Claiming security concerns,
Syria closed its borders in July and August 2005 against trucks coming from
Lebanon, but remained open for cars in both directions and for trucks going
into Lebanon. The Lebanese responded by diplomatic means without taking any
measures against the flow of trucks from Syria. The results of the talks are
inconclusive.
By July
2005, the political and general situations settled down, Lebanon's economy
improved, the capital inflows had resumed and were sustained throughout the
remainder of the year resulting in a balance of payments' surplus of USD 747
million by the end of the year. The
Lebanese authorities made tremendous efforts in the second half of 2005 to
improve revenue collection, contain spending, and keep the fiscal position
under control. The fiscal situation started to show signs of recovery after
July 2005. Whereas primary expenditures had increased by 6.8 % during
January-July compared to the previous year, they declined by 4.6 % in
August-December 2005. Meanwhile, revenues showed an improvement of 2 % during
the last five months of 2005 reversing partially the 4 % decline in the first
part of the year.
The
country is part of the Arab-Israeli conflict. Lebanon claims the Cheba'a farms
territories and 7 villages on the blue line. The International Community
considers the Cheba'a farms Syrian territories and is asking for a clear
written statement from Syria regarding the nationality of these lands. No such
written replies were issued yet by Syria.
On 12
July 2006, Hezbollah (a local Shiite military Islamic Party) initiated a
capture operation, consisting of a cross-border raid resulting in the capture
of two Israeli soldiers. Israel then responded by massive bombing to the
Lebanese infrastructure including Beirut International Airport, sea ports,
national roads and bridges and imposed an air and sea blockade especially
affecting southern Lebanon and Beirut, leaving only one international road
opened with Syria via Northern Lebanon.
The
Israeli military blitz caused unemployment to jump from 10 % to 16 % in the
short and medium term according to local economists. In addition, the attack
caused a workforce drain due the departure of thousands of skilled engineers
and labourers to other countries. Around 200,000 Lebanese - some of whom are
holding double nationality - left the country either temporarily or for good.
Lebanon was expecting over 1.6 million tourists in the summer season and most
hotels in Beirut and the mountains were fully booked by Arab and European
tourists who left Lebanon during the war.
Amongst
many Arab and European countries Saudi Arabia and Kuwait have already pledged
USD 500 million and USD 300 million respectively, for the reconstruction of
destroyed areas and USD 940 millon pledged at the United Nation's emergency
conference in Stockholm on August 31.
The
government has not yet assessed the cost of material damages but sources said
that the toll will exceed USD 4 billions.
Lebanon's
2005 GDP grew at the rate of 1% (IMF estimate) and was expected to rise 3% in
2006, which after the Israeli attacks is expected to turn out negative. In
terms of corruption control, the World Bank ranked Lebanon 122nd
globally and 13th in the MENA region.
The
short term outlook for trading businesses in Lebanon is negative, the tourism
sector is expected to be seriously affected by the 2006 war for several
years. However, due to United Nations
involvement and the amount of international assistance pledged the long term outlook
could be favourable, particularly in the construction sector.
Regardless of current and past economic,
political, and security situations in the Middle East and North African
countries (MENA); there is an overall rise in the country risk for each of
these countries. This rise is caused by factors outside the control of their
respective countries. The ongoing war on terror, the aftermath of the war on
Iraq, the disputes with Iran and Syria, and other factors are increasing the
likelihood of political and security instability, and the likelihood of
military actions or economic sanctions. In view of these events, and in our
opinion, exporters to the MENA region should exercise an appropriate degree of
caution.
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)