Leading agro-allied and chemicals company, Notore Chemical Industries Plc has recorded a group operating profit of N1.5 billion for first quarter which ended on March 31, 2022.
In a statement, the Group Managing Director/Chief Executive Officer of the company, Mr. Ohis Ohiwerei, said Notore recorded revenue of N16.3 billion, compared to N4.7 billion for the corresponding period last year, resulting in a 239 per cent increase Year on Year (Y-o-Y).
Ohiwerei attributed the good showing to relative stable production during the period and the favourable global market conditions.
He added that the group recorded net profit before tax of N1.5 billion for Q1 2022 as compared to a loss of N9.2 billion for the same period last year.
He said the company’s business experienced an upturn in production output in the quarter under review, owing to improved reliability and stability of its plant sequel to the Turnaround Maintenance programme executed last year.
Stating that the stable production coupled with favourable market conditions had boosted revenue and cash flows generated from operations during the quarter under review, leading to the profitable operating results announced by the company for Q1 2022, he said: “Notore operates in an ‘essential goods”’ industry and fertiliser demand is quite robust and is expected to continue grow considering the strong governmental policy focus on promoting agriculture as a measure for diversification of the Nigerian economy and as a pathway towards attaining National food security.
“The domestic fertiliser market is robust and with an abundance of untapped potential. Furthermore, the demand for urea and compound fertiliser, such as NPK, from the West African markets and Sahel African states is also quite significant.
By leveraging on its robust distribution channels and market reach, Notore is well positioned to continue to serve our customers in all our markets.
On the outlook for the year, he said: “We anticipate that the Federal Government policies and initiatives in the domestic food and agriculture sector will continue to be favourable to the fertiliser space.’’
Additionally, the on-going dynamics of the global market demand for Urea and NPK fertiliser is expected to span the rest of the on-going financial year, a boost to the business’ revenues, cashflows and profitability.