Nouvelle Conserverie Algerienne (New Algerian Canning, NCA) was founded in 1966 in the wake of the Algerian revolution as a food processing and canning company. The company’s initial product lines included jams, tomato paste as well as chilli paste in the form of harissa. Nearly two decades after beginning operation, NCA launched a new fruit juice business line under the iconic name of Rouiba which has since become part of the company name — NCA Rouiba. A mere 20 years later and NCA Rouiba is expanding its product range again and going into ultra-high-temperature milk. A year later in 2005 NCA Rouiba agreed to open its capital to investor Africinvest (formally Tuninvest), which agreed to purchase 40% of Rouiba’s stock for an undisclosed amount. This capital injection was in line with NCA Rouiba’s development and growth plans.

In 2007 NCA Rouiba initiated a financial restructuring programme, and turned to the European Investment Bank for funding. In 2013 capital investor Africinvest decided to decrease and partially exit its stake in NCA Roubia by initiating an initial public offering (IPO) on the Algiers Stock Exchange of 25% and keeping only a 15% stake in Rouiba, hence making NCA Rouiba the first family-owned business to be floated on the public market. In the subsequent year, the Algerian agribusiness giant Cevital agreed to purchase the remaining 15% stake from Africinvest.

However, the deal has since been blocked, and remains under investigation by the Algiers Stock Exchange’s financial regulator, the Commission for the Organisation and Oversight of the Stock Market, although no definite reason has been given to this date in regards to the transaction and its rejected status.

In 2015 NCA Rouiba maintained the positive growth trends recorded the previous year, with an increase in total revenues equal to 7.2%, however, the company’s net income witnessed a sharp 61.7% decrease from the previous year. During the June 2, 2016 general assembly, Slim Othman, NCA Rouiba’s CEO, explained that the decrease in net income is due the decrease in consumers’ purchasing power due to the high level of inflation and the devaluation of the Algerian Dinar, which subsequently increased the liabilities on NCA Rouiba’s balance sheet.

NCA Rouiba achieved total production volumes of 113m litres in 2015, an 8% increase from the previous year, when total production was 104m litres. The polyethylene terephthalate (PET) segment has witnessed a growth of 60% from 2014 due to investment in production capacity. However, cardboard beverages are still NCA Rouiba’s flagship, a segment where NCA Rouiba enjoys a 90% of market share. In the first half of 2015 turnover increased by 5% to AD3.55bn (€29m), compared to AD3.38bn (€328m) for the first half of 2014, thanks in large part to the PET segment, which saw a sales increase of 23%. NCA Rouiba’s margin on material costs was 42% in the first six months of 2015, up 1% from the same period in 2014.

Recent Results

NCA Rouiba made a negative net income of AD48.7m (€402,846) in the first half of 2016, registering a reduction of more than 140% compared with the same period of in 2015. Turnover increased by 4% in the first half of 2016 to reach AD3.7bn (€30.6m) against AD3.5bn (€29m) for the first half of 2015.

Distribution Of Dividends Exercise 2015

The ordinary general meeting of the shareholders of NCA Rouiba took place on June 2, 2016 and decided to distribute dividends in the amount of AD15 (€0.12) per share paid on June 8, 2016.

Development Strategy

At the general assembly meeting on June 2, 2016 Othamani clearly outlined the company’s development strategy on the company’s 50-year anniversary. Recent important development strategies include maintaining its position as market leader in the cardboard beverage segment, increasing its market share in the PET beverage segment, improving overall quality and continuing to developing new markets, particularly those in sub-Saharan Africa.