MIRA INFORM REPORT

 

 

Report Date :

25.09.2014

 

IDENTIFICATION DETAILS

 

Name :

NESTLE WATERS EGYPT SAE

 

 

Registered Office :

6 Dar El Shefa Street, Garden City, Cairo 11451

 

 

Country :

Egypt

 

 

Financials (as on) :

31.12.2013

 

 

Year of Establishment :

1980

 

 

Com. Reg. No.:

204399, Kaliubeya

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

Subject is engaged in the processing and bottling of mineral water.

 

 

No. of Employees :

520

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Egypt

B1

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EGYPT - ECONOMIC OVERVIEW

 

Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley, where most economic activity takes place. Egypt's economy was highly centralized during the rule of former President Gamal Abdel NASSER but opened up considerably under former Presidents Anwar EL-SADAT and Mohamed Hosni MUBARAK. Cairo from 2004 to 2008 aggressively pursued economic reforms to attract foreign investment and facilitate growth. Poor living conditions combined with limited job opportunities for the average Egyptian contribute to public discontent. After unrest erupted in January 2011, the Egyptian Government backtracked on economic reforms, drastically increasing social spending to address public dissatisfaction, but political uncertainty at the same time caused economic growth to slow significantly, reducing the government's revenues. Tourism, manufacturing, and construction were among the hardest hit sectors of the Egyptian economy, pushing up unemployment levels, and economic growth remains slow amid political uncertainty, government transitions, unrest, and cycles of violence. Cairo since 2011 has drawn down foreign exchange reserves and depended on foreign assistance, particularly from Gulf countries, to finance imports and energy products and prevent further devaluation of the Egyptian pound, fearing higher inflation from a weaker currency.

 

 

Source : CIA

 

 

 

 

SUMMARY

 

Company Name                                     : NESTLE WATERS EGYPT SAE

Country of Origin                                    : Egypt

Legal Form                                            : Egyptian Joint Stock Company

Registration Date                                   : 1980

Commercial Registration Number            : 204399, Kaliubeya

Industrial Registration Number                 : 141550

Chamber Licence Number                       : 0298

Issued Capital                                        : £E 81,500,000

Paid up Capital                                      : £E 81,500,000

Total Workforce                                     : 520

Activities                                               : Processors and bottlers of mineral water

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

COMPANY NAME

 

NESTLE WATERS EGYPT SAE

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : 6 Dar El Shefa Street

Area                 : Garden City

 

Town                 : Cairo 11451

Country             : Egypt

 

Telephone         : (20-2) 27919030 / 27919040

Facsimile          : (20-2) 27959882

 

Premises

 

Subject operates from a large suite of offices that are rented and located in the Central Business Area of Cairo.

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       Kafr El Arbein                                                                                   Factory premises

Benha

Kaliubeya

Tel: (20-13) 3880553

Fax: (20-13) 3881809

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

 

·       Philip Riffi                                                                                         Chairman

 

·       Maurizio Patarnello                                                                            Vice Chairman

 

·       Zaid Walid Al Bitar                                                                            Managing Director

 

·       Amr Qassem                                                                                    Director

 

·       Micheal Ghabrial                                                                               Director

 

·       Emad Salkhem                                                                                 Finance Manager

 

·       Amr Salah Mahmoud                                                                         Sales Manager

 

·       Abrar Ahmed                                                                                    Factory Manager

 

·       Youssef Gomaa                                                                                Purchasing Manager

 

·       Gidaa El Fakahany                                                                            Human Resources Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1980

 

Legal Form                  : Egyptian Joint Stock Company

 

Commercial Reg. No.  : 204399, Kaliubeya

 

Industrial Reg. No.       : 141550

 

Chamber Licence No.  : 0298

 

Issued Capital              : £E 81,500,000

 

Paid up Capital            : £E 81,500,000

 

Name of Shareholder (s)                                              Percentage

 

·       Nestle Water France                                                     99.6%

Switzerland

 

·       Nestle Egypt                                                                   0.3%

 

·       Samir Guirguis Bahna                                                      0.1%

     Egypt

 

 

OPERATIONS

 

Activities: Engaged in the processing and bottling of mineral water.

 

Import Countries: France and Italy.

 

Production Capacity: 1 million tons per month

 

Export Countries: Israel, Syria, Morocco, United Arab Emirates and Algeria.

 

Brand Names: NESTLE PURE LIFE and BARAKA

 

Operating Trend: Steady

 

Subject has a workforce of approximately 520 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Egyptian Pounds (£E)

 

                                    Year Ending 31/12/12:              Year Ending 31/12/13:

 

Total Sales                    £E 235,000,000                         £E 239,500,000

 

Local sources consider subject’s financial condition to be Good.

 

The above financial figures are based on estimations by our local sources.

 

 

BANKERS

 

·       Banque du Caire SAE

22 Adly Street

PO Box: 1495

Cairo

Tel: (20-2) 33904554

Fax: (20-2) 33908992

 

·       Citibank

PO Box: 188

Cairo

Tel: (20-2) 33551877 / 33551874

Fax: (20-2) 33558056

 

·       National Bank of Egypt

24 Sherif Street

     Cairo

     Tel: (20-2) 33924175

     Fax: (20-2) 33924143

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Please note that we were unable to contact the subject directly during our investigation.

 

According to local sources, subject meets its payment obligations in a timely manner and the business is considered to be a fair trade risk.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.03

UK Pound

1

Rs.99.99

Euro

1

Rs.78.37

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

               

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

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

 

--

NB

New Business

 

--

 

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%)

 

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