By Goddy Egene
Notore Chemical Industries Plc, which got listed on the Nigerian Stock Exchange (NSE) last August, has recorded a revenue of N26.82 billion for the financial year ended September 30, 2018, compared to N35.89 billion it realised in 2017.
According to the company, the decline in revenue was largely due to downtime caused by a maintenance programme on its plant in the last quarter of financial year.
The audited results showed that Notore recorded a reduction in cost of sales, which fell from N25.461 billion in 2017 to N17.217 billion in 2018. Administrative expensive went up from N4.421 billion to N6.21 billion, while sales and distribution expenses rose from N320 million to N530 million in 2018.
The operating profit increased by a four per cent from N6.94billion in 2017, to N7.22billion in the year under review. Despite the positive operating profit, Notore recorded a loss of N2.01billion during because of its net finance cost of N10.85 billion and an income tax credit of N1.62billion for the period.
The company is a leading producer of fertilizer products traded locally and exported to West Africa, Southern Africa and Europe. And given the efforts of the federal government to diversify the economy with much focus on agriculture, Notore, which operates in the agro-allied space has huge headroom for growth, hence its decision to list on the NSE.
The Group Managing Director/CEO of Notore, Mr. Onajite Okoloko had said the listing would increase access to capital in order to fund the company’s future growth initiatives and grant Nigerians the opportunity to participate in its growth history.
The company has been championing the introduction of Urea Super Granules (USG) into the Nigerian market for application by rice producers in flooded farmlands.
Notore sold all the urea it produced, approximately 258,519 metric tonnes, in 2018 into the domestic fertilizer market.
According to the company, it recently installed a 2,000 metric tonnes per day capacity NPK Blending Plant at its facilities, this will increase its production figures in the 2019 FY.
Also, in its commitment to improving product/service quality, processes and customer satisfaction, Notore has transited from its ISO 2001: 2008 Quality Management System (QMS) to the new ISO 9001:2015 Quality Management System (QMS) international standard.
Notore is embarking on Plant Turn-Around-Maintenance (TAM) programme, which involves the acquisition and installation of a back-up power plant and for the stocking-up of critical equipment spares inventory.
According to the management of the company, upon successful completion of the TAM programme in 2019, its Urea production volume will increase to its nameplate capacity of 1,500mtpd, translating to significant increases in future revenues and cash flows of the company and the group.