Notore Chemical Industries Plc has posted a depressed earnings of N26.823 billion for the year ended September 30, 2018, compared with N35.894 billion in 2017.
But the revenue, according to the company, is expected to improve in 2019 after the completion of its plant Turn-Around-Maintenance (TAM) programme.By the audited results, Notore recorded a reduction in cost of sales, which fell from N25.461 billion in 2017 to N17.217 billion in 2018, as administrative expenses went up from N4.421 billion to N6.21 billion, while sales and distribution expenses rose from N320 million to N530 million in 2018.
Operating profit, however, improved to N7.218 billion, up from N6.942 billion in 2017, but financing cost rose from N9.091 billion to N10.848 billion, making the company to end the year with a loss after tax of N2.013 billion, compared with a profit of N8.652 billion in 2017.
Notore is a leading producer of fertilizer products traded locally and exported to West Africa, Southern Africa and Europe.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 Nigerian Stock Exchange (NSE) last August.
The Group Managing Director of Notore, Onajite Okoloko, had said the listing would increase access to capital 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.
USG is simply Urea compacted into big granules (2.7g per granule) so that it can be applied via deep placement in flooded rice fields and the company has taken the lead in promoting its widespread adoption across the country.
In recognition of the potential benefits of the USG and its advantages over the conventional urea fertilizer for rice farmers, the company has attracted the interest and partnership of the Africa Enterprise Challenge Fund (AECF).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.