Chemical and agro-allied company in Africa, Notore Chemical Industries Plc has announced a group revenue growth of 43 per cent to N27.02 billion for the fifteen months period ended 31st December 2021.
In a statement, Group Managing Director and Chief Executive Officer (CEO), Mr Ohis Ohiwerei said the company in the year 2021, changed its accounting date from 30th September to 31st December as part of the measures taken to strategically reposition the company for revenue growth and profitability.
According to him, “During the 15 months period ended 31st December 2021, Notore recorded group revenues of ₦27.02 billion, an increase of 43% over the prior financial year (₦18.79 billion for FY 30th September 2020).
“2021 was a year of rebuilding and repositioning Notore to further deliver on its promise to Champion the African Green Revolution. During this period, the company carried out a turnaround maintenance programme (TAM) which led to a 102-day plant shut down. The 15 months prior to 31st December 2021 was a challenging period for the Company occasioned by the negative global impact of Covid-19 disruptions.
“This caused TAM to extend over a prolonged period with a consequential effect on production output. Nevertheless, Notore has improved its facilities’ reliability, and is well positioned for growth in 2022.”
He stated that the company is optimizing its operations and expects a major upturn in its production output in the ongoing financial year.
He noted that achieving an upturn in its operations will not only lead to a significant increase in the company’s cash flows from operations, but also a substantial increase in revenues, which is a major key to returning the company to profitability, adding, “The production and sale of Notore NPK fertilizer into the domestic market is also expected to contribute significantly to the Company’s revenue growth and profitability going forward.”
He stressed that as part of the company’s efforts to further diversify its revenue stream, boost profitability and consolidate customers’ loyalty, Notore is expanding its product offering by going into rice production and that two rice pilot programs carried out recently are a prelude to its planned launch of the rice product line.
On the outlook for the year, Ohiwerei said the demand for urea and compound fertilizers in Nigeria and the West African sub-regional markets remains robust and is expected to continue to grow.
“With fertilizer consumption still far below the 200kg per hectare recommended by Food and Agriculture Organization, it is evident that both the domestic and regional fertilizer markets are yet to reach their full potential and guarantee the sale of all the fertilizers produced by the Company in the on-going year.
“With the Federal Government’s strong and decisive policy focus on agriculture as one of the keys to unlock the diversification of the Nigerian economy, Notore is well-positioned to take full advantage of this policy in the execution of its business strategy going forward,” he added.