For the six months that ended on June 30, 2022, Notore Chemical Industries Plc reported group revenue of N26.28 billion, an increase of 178.7% over the N9.43 billion for the comparable period in the 2021 half-year.
In the same period, the company also reported N2.6 billion in net profit before tax, an increase of 116.4 percent over the prior year.
Group Managing Director and Chief Executive Officer (CEO) of Notore Chemical Industries Plc, Mr. Ohis Ohiwerei, stated in a statement that the modest increase in revenue is due to increases in production output and plant reliability, which are benefits of the Turn Around Maintenance (TAM) program implemented for the majority of the year 2021.
“Despite this, operating income for the quarter was N10.85 billion, a notable rise of 328.7% as compared to a loss (N3.30 billion) in 2021H1,” he said. Increased profitable operations during the time period were the cause of this. A significant step in the firm’s quest to resume successful business operations, the group declared a net profit before tax of N2.60 billion for the period, up from a loss of (N15.84 billion) for 2021H1 (an improvement of 116.4 per cent YoY).
As it works to return to profitability and reposition itself for a bright future, Ohiwerei said that Notore demonstrated remarkable progress and accomplished significant milestones during the period. He continued, “The period witnessed an increase in Plant reliability and relatively stable operations, resulting in significant increases in production output and sales.
“Notore NPK fertilizer production has continued to ramp up, and considerable increases in output and sales of NPK fertilizers are predicted in the second half of the current year. In addition, the sale of Notore seeds to Nigerian farmers to increase crop yields went on as part of our corporate objective to make a substantial contribution to Africa’s development.
In order to further diversify the company’s revenue sources and increase profitability, Notore plans to continue its expansion into new products. He added that Notore had effectively converted a sizeable portion of its short-term loans into fixed long-term loans over the period as part of efforts to strengthen working capital and bring the Group and the Company back to profitability. This improved debt service management.
Regarding the company’s outlook in light of the market disruptions, he noted that while the Russian-Ukrainian conflict had some disruptive effects on the dynamics of the international fertilizer markets during the time, domestic fertilizer market demand was quite strong and was anticipated to grow in light of the Federal Government’s strong and determined policy focus on agriculture as one of the keys to unlocking the diversification of the Nigerian economy.
He stated, “By utilizing the company’s strong distribution network and supply chain, Notore is well positioned to continue serving our clients in all of our markets. The Company plans to continue its existing trend of profitable operations for the remainder of the current fiscal year thanks to the achieved improvement in Plant dependability and increased production output and sales.