Leading fertilizer and agro-allied company in Africa, Notore Chemical Industries Plc, has posted a 6 percent revenue growth, showing gross revenue of ₦17.4 billion and operating income of ₦3.8 billion for the nine months ended June 30, 2020.
The company disclosed this in its unaudited Q3 2020 Financial Results.
In a statement, it said, “There has been good progress with the on-going Turn Around Maintenance (TAM) programme on the existing plant. Significant increases in production outputs and revenues are projected after TAM is completed at the end of December 2020 as expected.”
Giving further breakdown of its results, the company said, “The gross revenue stands at ₦17.42 billion, compared to ₦16.49 billion in Q3 2019 (6% YoY growth), representing a modest increase in production output and sales, while operating income is ₦3.79 billion, compared to ₦3.34 billion in Q3 2019 (an increase by 13% YoY) driven largely by increases in other income.’’
It noted that its debt service cost stood at ₦11.89 billion, compared to ₦10.45 billion in Q3 2019 (14% YoY growth), due to additional term borrowing to finance the TAM programme and the impact of Naira devaluation on foreign currency denominated loans.
It continued: “Notore’s gradual revenue growth is attributable to some improvements in Plant reliability derived from the on-going Turn-Around Maintenance (TAM) programme, which has begun to impact positively on Plant operations, resulting in some modest increases in production volumes and production on-stream days during the period.
“Operating expenses increased by 22% to ₦16.24 billion during the period from ₦13.23 billion for the corresponding period of Q3 2019 due mainly to a combination of increases in production activities, Plant repair and maintenance expenses exacerbated by Naira devaluation.”
On the impact of the coronavirus (COVID-19) on its operations, the company said it has continued to weather the storm during the period and recorded impressive sales during its 2020 financial year, noting, “For the period under review, Notore sold all the urea that it produced in both domestic and international fertilizer markets.”
Notore’s group managing director, Mr. Onajite P. Okoloko, said, “Having installed and commissioned a brand new 2,000 metric tons per day NPK Blending Plant with capacity to produce various crop specialty blends of NPK fertilizer, the company is consolidating customer loyalty by expanding its product offerings.