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Coke, McDonald’s, Pepsi, Starbucks join exodus out of Russia

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Global brands bow to public pressure and suspend their operations in Russia, joining international corporate chorus of outrage over Moscow’s invasion of Ukraine.

McDonald’s, Starbucks, Coca-Cola, PepsiCo and General Electric –– ubiquitous global brands and symbols of US corporate might –– all have announced the temporary suspension of their businesses in Russia in response to the country’s invasion of Ukraine.

“Our values mean we cannot ignore the needless human suffering unfolding in Ukraine,” McDonald’s President and CEO Chris Kempczinski said in an open letter to employees on Tuesday.

The Chicago-based burger giant said it will temporarily close 850 stores but continue paying its 62,000 employees in Russia “who have poured their heart and soul into our McDonald’s brand.”

Last Friday, Starbucks had said that it was donating profits from its 130 Russian stores –– owned and operated by Kuwait-based franchisee Alshaya Group –– to humanitarian relief efforts in Ukraine.

But on Tuesday, the company changed course and said it would temporarily close those stores.

Alshaya Group will continue to pay Starbucks’ 2,000 Russian employees, Starbucks President and CEO Kevin Johnson said in an open letter to employees.

Coca-Cola Co. announced it was suspending its business in Russia, but it offered few details.

Coke’s partner, Switzerland-based Coca-Cola Hellenic Bottling Co., owns 10 bottling plants in Russia, which is its largest market. Coke has a 21 percent stake in Coca-Cola Hellenic Bottling Co.

Pepsi, based in Purchase, New York, said it will suspend sales of beverages in Russia. It will also suspend any capital investments and promotional activities.

General Electric also said in a Twitter post that it was partially suspending its operations in Russia.

GE said two exceptions would be essential medical equipment and support for existing power services in Russia.

McDonald’s treading on thin ice

McDonald’s is among those to take the biggest financial hit.

Unlike Starbucks and other fast-food companies like KFC and Pizza Hut, whose Russian locations are owned by franchisees, McDonald’s owns 84 percent of its Russian stores.

McDonald’s has also temporarily closed 108 restaurants it owns in Ukraine and continues to pay those employees.

In a recent regulatory filing, McDonald’s said its restaurants in Russia and Ukraine contribute 9 percent of its annual revenue, or around $2 billion last year.

McDonald’s said on Tuesday it has donated more than $5 million to its employee assistance fund and to relief efforts.

Pressure had been mounting on companies that remained in the country.

Long history in Russia

Some of the companies have a long history of operating in Russia. PepsiCo entered the Russian market in the early 1960s, at the height of the Cold War, and helped to create common ground between the US and the Soviet Union.

Later, McDonald’s was one of the first US fast food companies to open a store in Russia, a sign that the Cold War had thawed.

On January 31, 1990, thousands of Russians lined up before dawn to try hamburgers –– many for the first time –– at the first McDonald’s in Moscow. By the end of the day, 30,000 meals had been rung up on 27 cash registers, an opening-day record for the company.

But since the Ukraine invasion last month, many corporations have ceased operations in Russia in protest.

Source: TRT

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BML announce new MVR 1-mil loan facility without collateral

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The Bank of Maldives (BML) on Monday officially announced the launch of two new home loan products; the Home Build Loan and the Home Equity Loan.

The new loan facilities have been introduced to cater to the growing customer needs for home construction and renovation, BML said.

The new Home Build Loan has been designed to allow individuals to borrow up to MVR 1 million without any additional security. The facility provides a repayment period of over 15 years, which is ideal in renovation projects or larger home construction projects across the Maldives.

The bank also, for the first time, has introduced Home Equity Loan for existing Home Loan and Financing customers. This new facility enables these customers to borrow up to the repaid amount, or the usable equity, of the primary loans. The Home Equity Loan is offered for borrowings of more than MVR 50,000 with a repayment period of 20 years.

Moosa Nimal, the Director of Retail and SME Banking said, “These products are designed to make access to finance easier for our customers across the country.”

“The new Home Build Loan does not require any additional security and will allow customers to build or renovate homes at the most competitive market rates. Our Home Equity Loan offers our existing home financing customers to access usable equity available on their property, at a low rate of just 10%.”

The newly introduced loan facilities are available for BML Islamic customers as well.

Source(s): sun.mv

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MIB signs an agreement to expedite business registration process

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Ministry of Economic Development and Trade and the Maldives Islamic Bank (MIB) has entered an agreement, aiming to expedite and streamline the registering services for businesses. The agreement was signed to enhance the quality of services, ensure information security, and facilitate an efficient registration process.

Following the signing of the agreement, Minister of Economic Development and Trade Mohamed Saeed disclosed that customer data can be readily verified with the assistance of the ministry’s Application Programming Interface (API). The minister stated that this would enable businesses to set up bank accounts in a convenient manner. Regarding this, Registrar of Companies Mariyam Waheed underscored the pivotal role API will play in authenticating businesses to customers and expediting in the verification process.

This initiative will significantly benefit individuals accessing online services from the ministry, fostering economic development within the nation. This marks the first agreement of its kind signed by the ministry.

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MTCC reports staggering 82.9% net profit drop

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Maldives Transport and Contracting Company (MTCC) has reported a staggering 82.9% net profit decline for Q1-2024.

According to MTCC, it earned just MVR 5.2 million in net profit for the review quarter, which came down from MVR 30.8 million in the last quarter of 2023.

The company’s revenue for Q1-2024 stood at MVR 664.4 million, which is a 15.8% drop from MVR 789.2 million generated in the Q4-2023.

Moreover, MTCC reported a whopping 94.5% decline in its Gross Profit for the review quarter, registering MVR 2.5 million in Q1-2024 compared to MVR 44.3 million.

The operating profit for the review quarter stood at MVR 41.8 million, which is a 26% drop from MVR 56.5 million in Q3-2023.

The net asset value per share dropped from MVR 227.95 in Q4-2023 to MVR 226.98 to Q1-2024, while earnings per share saw a notable decline from MVR 3.83 in the preceding quarter to just MVR 0.65 in the review quarter.

Source(s): sun.mv

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