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+--- Thread: Notore grosses N16.5b in nine months (/showthread.php?tid=20307)
Notore grosses N16.5b in nine months - Edoman - 08-01-2019
Notore grosses N16.5b in nine months
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![[Image: Notore-Chemical-Industries-Nigeria.jpg]](https://thenationonlineng.net/wp-content/uploads/2019/07/Notore-Chemical-Industries-Nigeria.jpg)
[url=https://thenationonlineng.net/nahco-notore-others-make-nses-benchmark-stocks/]Notore Chemical Industries Nigeria Plc recorded a turnover of N16.5 billion in the third quarter of its current business year as the vertically integrated agro-allied and chemicals group struggled with plant downtime and high finance costs.
Key extracts of the interim report and accounts of Notore for the nine-month period ended June 30, 2019 showed a turnover of N16.5 billion against operating profit of N3.34 billion. The report however showed a top-down slowdown in the performance of the company, a situation the company attributed to plant downtime and finance costs.
Notore had recorded a turnover of N20.6 billion in period ended June 30, 2018 while operating cost was higher at N3.75 billion in 2018. With cost of sale rising from N12.42 billion to N13.23 billion and financing cost increasing from N7.69 billion to N10.45 billion, the company ended June 30, 2019 with net loss after tax of N7.103 billion as against N3.94 billion in comparable period of 2018.
The company attributed the top-line performance to plant downtime due to ongoing Turn-Around Maintenance (TAM) programme, which is expected to be completed by first quarter of 2020. The company stated that the plan will operate at its nameplate capacity after the completion of the TAM.
The company stated that it remains optimistic on its growth outlook noting that the Nigerian fertilizer demand is quite robust and is expected to continue to grow because of the federal government’s efforts to increase both the supply and demand for fertilizers, through provision of subsidies, grants and loans and through recent government initiatives such as the Presidential Fertilizer Initiative (PFI).
According to the company, the domestic fertilizer market is yet to reach its full potential as the consumption of fertilizer per hectare of arable land in Nigeria is below 10kg compared to the 200kg recommended by Food & Agriculture Organisation.
Notore added that the demand for urea and compound fertilizers, such as NPK, from the West African markets and Sahel African states is also quite significant noting that it sold all the 156,615 metric tonnes of urea that it produced during the period under review.
“Additionally, on-going market demand for NPK and NPK specialty will boost the business’ revenues when its newly installed and commissioned 2,000 MTD NPK blending plant begins production. Consequently, Notore has begun gradual efforts to further diversify its revenue streams by selling specifically produced Notore seeds to farmers. To enhance profitability, Notore is working on financial initiatives to reduce its finance cost considerably,” Notore stated.