By Favour Nnabugwu
Construction giant, Julius Berger Nigeria, JBN, has introduced a new technology to construction of roads in the country, which would ground the old asphalt, treat and use it to increase the thickness and height of the asphalt for enduring roads.
The Chairman of the Group, Mr Mutiu Sunmonu, at the 48th Annual General Meeting, AGM, in Abuja at the weekend, also announced that the company generated N141.89 billion revenue at the end of the financial year 2017, saying JBN is investing in research and development so as to maintain its leadership in construction sector of the country. Sunmonu told shareholders that there has been a progressive transformation of the company into a leaner, describing the company as more flexible, more competitive and profitable corporation.
He said the company made the profit having posted a profit-after- tax of N2.5 billion compared to a loss-after-tax of N2.3 billion made in 2016.
The chairman said that the revenue of the company increased from N138 billion in 2016 to N141 billion in 2017, while gross profit increased from N44 billion in 2016 to N54 billion in 2017, as the company recorded N3.7 billion profit-before-tax in 2017 compared to an N1.4 billion loss in 2016.
Further analysis of the company’s result showed that cost of sales jumped to N97.591 billion from N84.767 billion; leaving gross profit at N44.298 billion, down from previous N54.226 billion.
JBN’s marketing expenses dropped from N53.327 million to N47.851 million; just as administrative expenses dropped slightly from N37.38 billion to N35.564 billion, resulting in operating profit of N8.686 billion, down by N8.106 billion or 48.27 per cent from N17.792 billion in the 2016 full year.
In his speech, the Managing Director of Julius Berger Nigeria, Wolfgang Goetsch said that the company would, with the new technology, construct more lasting and enduring roads with an asphaltic concrete thickness of 12 centimetres (120mm), adding that the old asphalt would be gathered, grounded and treated to make the road even thicker and more solid. Goetsch informed that the company has 24 ongoing and newly awarded projects while promising to complete most of its projects on schedule.