By Peter Egwuatu
NOTORE Chemical Industries Plc has announced revenue of N26.8 billion for the year ended September 30, 2018, compared with N35.894 billion in 2017.
The company said its revenue is expected to improve in 2019 after the completion of its Plant Turn-Around-Maintenance, TAM, programme.
According to the audited results released to the Nigerian Stock Exchange, NSE, Notore recorded a reduction in cost of sales, from N25.461 billion in 2017 to N17.217 billion in 2018.
But administrative expenses went up to N6.21 billion, from N4.421 billion, while sales and distribution expenses rose to N530 million in 2018.from N320 million in 2017.
Operating profit improved to N7.218 billion, up from N6.942 billion in 2017. However, 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.
The decline in revenue was largely due to downtime caused by a maintenance programme on its plant in the last quarter of 2018.
The operating profit for the the full year increased by a 4.0 percent margin from to N7.22billion from N6.94 billion in 2017. Despite the positive operating profit, Notore recorded a loss of N2.01billion during the FY because of its net finance cost of N10.85billion and an income tax credit of N1.62billion for the period.
The company is a producer of fertilizer products traded locally and exported to West Africa, Southern Africa and Europe.
Commenting on the result, the Group Managing Director/CEO of Notore, Mr. Onajite Okoloko said: “The company’s revenue is expected to improve next year after the completion of its Plant Turn-Around-Maintenance, TAM, programme.”
He stated that the listing of the company would increase access to capital in order to fund the company’s future growth initiatives and grant Nigerians the opportunity to participate in its growth history.