Company
Overview
VANLEER began as Metal
Containers of West Africa Limited on January 20, January 1940. It was renamed Van Leer Containers (Nigeria)
Plc in 1969. VANLEER is a subsidiary
of Greif International Holding B.V. (Netherlands). It became a public limited
company, Greif Nigeria Plc, on 12th May, 2004. Its business focus is on manufacturing
and marketing of metal drums.
Greif
International Holding B.V. (Netherlands) controls 51% of the company while The
Van Leer Nigerian Education Trust holds 23% equity stake of the company. The
members of the public own the remaining 26%.
Investment
Thesis
Revenue
grew at a Compound Annual Growth Rate (CAGR) of 21.3% over the past three years
(2016: 7.9%). The company benefits form
technical and support services from members of the Greif group. The business is not high-geared and investors
of VANLEER should expect a return of 41.5%
in three years’ time.
VANLEER generates free cash
flow to the shareholders owing to the fact that it is not capital intensive. It
trades at 1.1 and 0.3 times book value and sales respectively. Return on
capital employed got better by 3.3% and return on average equity rose to 14.1%
from 8.1% of a year before.
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