MIRA INFORM REPORT
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Report Date : |
14.05.2013 |
IDENTIFICATION DETAILS
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Name : |
NATIONAL BEVERAGE COMPANY LTD. |
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Registered Office : |
P.O. Box 1395 Industrial Zone Ramallah West Bank Palestinian Authority |
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Country : |
Israel |
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Date of Incorporation : |
1998 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Sole franchise bottlers and distributors of COCA-COLA soft drinks in
the Palestinian Territories. |
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No. of Employees : |
350 employees |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Israel |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
ISRAEL - ECONOMIC OVERVIEW
Israel has a technologically advanced market economy. Its
major imports include crude oil, grains, raw materials, and military equipment.
Cut diamonds, high-technology equipment, and pharmaceuticals are among the
leading exports. Israel usually posts sizable trade deficits, which are covered
by tourism and other service exports, as well as significant foreign investment
inflows. The global financial crisis of 2008-09 spurred a brief recession in
Israel, but the country entered the crisis with solid fundamentals - following
years of prudent fiscal policy and a resilient banking sector. The economy has
recovered better than most advanced, comparably sized economies. In 2010,
Israel formally acceded to the OECD. Israel's economy also has weathered the
Arab Spring because strong trade ties outside the Middle East have insulated
the economy from spillover effects. Natural gasfields discovered off Israel's
coast during the past two years have brightened Israel's energy security
outlook. The Leviathan field was one of the world's largest offshore natural
gas finds this past decade, and production from the Tama field is expected to
meet all of Israel's natural gas demand beginning mid-2013. In mid-2011, public
protests arose around income inequality and rising housing and commodity
prices. The government formed committees to address some of the grievances but
has maintained that it will not engage in deficit spending to satisfy populist
demands.
|
Source
: CIA |
NATIONAL BEVERAGE
Correct Name: NATIONAL
BEVERAGE COMPANY LTD.
(Known in short as NBC)
Telephone 972 2 298 47 24
Fax 972 2 298 75
58
Email: babuhijleh@nbc-pal.com
P.O. Box 1395
Industrial Zone
RAMALLAH WEST BANK PALESTINIAN AUTHORITY
A foreign private limited company
established in 1998 as a franchise of THE COCA-COLA COMPANY. Registered in the
Palestinian Authority as per file No. 56-243481-1.
Data not forthcoming.
(According to our from 2008, current status not forthcoming)
1. Zahi Khouri, 30%,
2. YOUSR COMPANY FOR
INVESTMENT LTD., 30%,
3. THE VEGETABLE OIL
COMPANY (VOIC), Jordan, 25%,
4. SOFT DRINKS HOLDINGS CO.
(SDH), a subsidiary of COCA-COLA INTERNATIONAL, 15%.
Zahi Khouri, Chairman,
Ms. Dina Masri.
Imad Hindi
Sole franchise bottlers and distributors of COCA-COLA soft drinks in the
Palestinian Territories.
Beverages bottled by subject include: Coca-Cola, Diet Coke, Fanta,
Sprite, Diet Sprite.
Also marketers of Marawi juices and nectars, as well as mineral water
beverages "Jericho" and "Arwa".
Operating from an owned premises (offices and plant), on an area of
6,000 sq. meters, in the Industrial Zone, Ramallah, from 4 sales and
distribution centers located in Gaza and 3 depots, located in Ramallah, Hebron
and Nablus.
Having over 350 employees.
Financial data not forthcoming.
Subject is known to be holding large stock quantities.
PALESTINE INVESTMENT FUND estimated subject's market value, in January
2003 at US$ 10.7 million.
2004 sales claimed to be NIS 82,000,000.
2005 sales claimed to be NIS 103,000,000.
2006 sales claimed to be US$ 29,224,837.
First 9 months of 2007 sales claim to be US$ 27,003,500.
(Note: reported sales figures in US$ since 2006, not NIS)
Later sales data not forthcoming
PALESTINE BEVERAGE GROUP MARKETING CO. LTD.,
established 1998, manufacturers and marketers of non-carbonated soft drinks
(orange and grapefruit juice, etc).
Mr. Zahi Khouri is also a shareholder in PADICO, Palestinian largest holding
corporation, who holds shares in, among others, PALTEL (Palestinian sole
wireline operator), a hotel in Bethlehem, in the Palestinian Stock Exchange and
in real estate properties.
Arab Bank Plc., Ramallah Branch (Grand Park St., P.O. Box 1476),
Ramallah, West Bank, Palestinian Authority – According to our subject's main
branch.
Jordan National Bank Ltd. (Jordan Ahli Bank), Ramallah Branch (Al-Zahra'
St., P.O. Box 550), Ramallah, West Bank Palestinian Authority.
Nothing unfavorable learned.
We were asked by subject's CFO to send an email, and were told he will
return to us with answers next week. Upon receiving fresh information we shall
update you accordingly.
Subject is the leading beverage company in the Palestinian Authority.
Subject’s market share in the field of carbonated soft drinks exceeds 50%
Mr. Zahi Khouri is a well known respected figure in the Palestinian
Authority, involved in other business and public affairs.
In 2005 subject acquired the Palestinian Beverage Group MARAWI,
manufacturers of juices.
In February 2006 subject signed an agreement with JERICHO NATURAL
MINERAL WATER CO. to distribute JERICHO's mineral water in the Palestinian
Authority.
The Palestinian Authority is presently in a state of crisis, with a dire
shortage in cash, in fact on the verge of bankruptcy, where the authorities are
unable to pay salaries, delay in payment of US$ 500,000 to the private and
public sectors, and fear it will be unable to redeem loans in volume of US$ 1.2
billion. With a trade deficit of US$ 4 billion (50% of GDP), the Palestinian
economy, which grew by an average of 9% in the years 2008-2010 (was nearly zero
in 2007), show clear signs of slow-down in the macro aspect, with 5.8% growth
in 2011 in the West Bank (figures for 2012 are ambiguous). Much of the growth was attributed to the
foreign aid received, though over the last period there have been delays in the
transfer of the promised donation - in 2011 & 2012 it received outside
support of US$ 1.5 billion & US$ 1.78 billion, respectively, though much
less than expected.
It should be noted that according to reports, on the private business
level, the crisis is less felt at this stage in the Palestinian city's streets,
though if the governmental/public sector collapses – as such warnings exists –
that may drag the banking and financial sector down and eventually reach the
private sector.
Other current indicators are still alarming, mainly in the Gaza Strip,
such as high unemployment rates (19% in the West Bank in 2012, over 30% in
Gaza), and poverty (70% in Gaza).
According to World Bank and Palestinian Investment Promotion Agency, total
GDP of the Palestinian Economy in 2008 was US$ 4.6 billion, and GDP per capita
is US$ 1,290 (was US$1,272 in 2006). These figures include the West Bank and
Gaza Strip, whose economy has been in different condition. GDP per capita (or
average annual income per capita) in the West bank has climbed to US$ 2,800 by
2009 and around US$ 3,000 in 2010/11, while remains low in Gaza – around US$
1,000 per capita
In terms of foreign trade, Total Import in 2007 summed up to US$ 3,141
million, while Total Export reached US$ 513 million. 80% of imported goods to
the Palestinian Territories are carried out via Israel.
The Palestinian economy suffered a set-back in recent years, following
the rising of the Hamas government in Gaza Strip in 2007, which led to internal
conflict and clashes between the Hamas supporters and those of the Phatah
movement.
While the political situation has been stable in the West Bank
(controlled by Phatah) leading to economic growth in recent years, the
condition in the Gaza Strip deteriorated drastically, also due to the blockage
on goods movement in and out the Strip for long period. The situation in Gaza
Strip improved drastically since 2010, with overseas donation and the partial
lifting of goods blockage – Gaza Strip economy grew by 26% in the first 3Q of
2011 (16.5% in 2010, 1% in 2009) according to the International Monitory Fund
(IMF), though situation is still critical. Yet, deterioration occurred due to
the military fight with Israel in late 2012.
Notwithstanding the lack of updated data from subject's officials,
considered good for trade engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.91 |
|
|
1 |
Rs.84.44 |
|
Euro |
1 |
Rs.71.31 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.