The Nation Newspaper

Tag: Berger Paints

  • Berger Paints promises growth as forex scarcity reduces Q1 profits

    Berger Paints promises growth as forex scarcity reduces Q1 profits

    Berger Paints Nigeria Plc has promised their shareholders improved returns on their investments by the end of the year despite the drop in their financial performance for the first quarter (Q1) ended March 31, 2016 to foreign exchange scarcity (FX).

    The Premier paints company in Nigeria said it is hopeful of increased profitability by leveraging on its soon to be commissioned first automated paint manufacturing plant in Sub-Sahara Africa that would reduce production costs, reduce response times, improve their product quality and make them compete favourably with imported brands.

    The Managing Director and Chief Executive Officer, Berger Paints, Mr. Peter Folikwe disclosed this to stockbrokers at the presentations of the company’s facts behind the figures on the floor of Nigerian Stock Exchange in Lagos.

    Folikwe said though revenue increased by Eight per cent (N54m) from N706 Million in Q1 2015 to N760 Million in Q1 2016, Operating Profit fell 72 per cent (N79m) from N109 million in Q1 2015 to N31 million in Q1 2016.

    He said the decline was as a result of; “margin drop largely as a result of increase in raw material prices, scarcity of foreign exchange as we have to largely resort to local sourcing of raw materials at exorbitant price and the general lull in economic activities due to the delay in passage of 2016 budget”.

    For the second quarter 2016 financial forecast, he said they are targeting N1.014 billion revenue and profit after tax of N111 million.

    The Chairman,Berger Paints, Dr Oladimeji Alo said despite the first quarter result, the company intends to reclaim its first position in the market through aggressive drive and investments in their leading brands, increase in  marketing activities to gain visibility and renewed evolvement of their route to market capabilities to drive aggressive sales.

  • We are outsourcing to drive growth, says Berger Paints

    We are outsourcing to drive growth, says Berger Paints

    BergeR Paints Nigeria Plc is outsourcing its depots and launching a franchisee scheme to ensure more availability of its products and to drive growth in the years ahead.

    Under the plan, Berger Paints will outsource its 17 depots nationwide. It will later complement this initial stage with appointment of franchisees in other locations in the country where Berger Paints has minimal presence and visibility.

    Managing Director, Berger Paints Nigeria Plc, Mr Peter Folikwe, said the plans were part of renewed efforts to reduce huge cost of operations and boost shareholder value.

    According to him, the strategy, aimed at enhancing accessibility, visibility and availability of the company’s products, is expected to boost earnings and strengthen its competitive edge.

    He explained that the strategic move was designed to improve the company’s operational efficiency and ensure strong and sustainable growth of both the top and bottom line.

    “These steps taken by the board and management will enhance proximity of our products to our customers and ensure the availability of genuine Berger Paints products all over the country”, Folikwe said.

    He pointed out that the expansion scheme by the company has seen the deployment of existing and newly recruited employees to cover its front and back end operations.

    Folikwe advised existing and aspiring entrepreneurs to key into this scheme which promises to be a rewarding one as testified to by those who have become Berger Paints outsourced depot operators, distributors and dealers.

    He encouraged existing and potential customers of the company not to use inferior paint products, because these do not only have severe mid to long term financial implications, but also constitute health hazards.

     

  • Berger Paints CEO reiterates commitment to shareholder value

    Managing Director, Berger Paints Nigeria Plc, Mr Peter Folikwe has reiterated his commitment to creating better value for shareholders of the company by adhering to highest standard of corporate governance.

    He said that the on-going turnaround efforts at Berger Paints was to re-position the company to take its rightful place as one of the most profitable quoted companies on the Nigerian Stock Exchange (NSE).

    He pointed out that within the short period of his assumption of office at Berger Paints, the company’s earnings had grown by 50 per cent and 89 per cent respectively. Folikwe was appointed the Managing Director of Berger Paints Nigeria Plc in April 2015.

     

     

  • Berger Paints boss, others bag marketing fellowship

    The Managing Director and Chief Executive Officer, Berger Paints Nigeria Plc, Mr Peter Folikwe has bagged the Fellowship of the National Institute of Marketing.

    Folikwe, who described the award as a call to duty explained that he would continue to leverage on his training and exposure to advance positive changes in the corporate world.

    Conferring the award on him at a colorful ceremony organised by the National Institute of Marketing of Nigeria, the institute’s President, Mr Ganiyu Koledoye described Folikwe as a quintessential turn -around manager who has recorded milestones writhing the short period of his assumption of office as the Chief Executive Officer of Berger Paints Nigeria Plc.

    Koledoye advised the new fellows to take active part in the activities of the Institute in order to move it to the next level. The Institute conferred fellowship on twenty distinguished members.

    Folikwe was appointed the Managing Director of Berger Paints Nigeria Plc in April 2015 and six months, the business has begun witnessing a turnaround and its performance as evidenced by its half year and nine months results which grew by 50 per cent and 89 per cent respectively.

    Folikwe is a graduate of Marketing of the University of Nigeria, Nsukka. He also holds a Master of Business Administration from the University of Benin, Nigeria.

    He is a seasoned Sales and Marketing professional with over 24 years of experience as Marketing, Sales/Distribution and General Management, garnered from a number of top rated companies in Nigeria.

    He started his career with Vitafoam Nigeria Plc as a Trade Marketer. He later became Channel Manager, MTN Service Centres and MTN Connect Stores across the country.

    He returned to Vitafoam Nigeria Plc in 2006 as Head, Sales and Marketing. Due to his sterling performance, he was elevated to the board of the foam and mattress manufacturing company to serve as Sales and Marketing Director at Vitafoam Nigeria Plc from 2008 to March 2013. He played a key role in re-engineering and refocusing the company’s Marketing and Sales strategies.

  • YABATECH, Berger Paints sign pact

    Yaba College of Technology (YABATECH) and Berger Paint have signed a Memorandum of Understanding (MOU) to enhance practical training for students studying polymer and paints manufacturing and other technical and vocational programmes.

    They signed the deal at a meeting between the representatives of the college led by the Director, Academic Planning Unit, Mr Udoh Inyang, and Berger Paints led by the Managing Director, Mr. Peter Folikwe at the conference hall of YABATECH.

    Folikwe expressed the company’s willingness to collaborate with the college in research, internship, technical and vocational education, and exchange of ideas.

    He also said Berger Paint was ready to add value to the college by subsidising the sourcing of paints to beautify the college.

    In addition to training students to produce quality paints, Folikwe also said the firm would collaborate with the college to introduce a one-year certificate course to add value to the society.

    Describing the partnership as the marriage between the industry and the college, Inyang said the partnership would enhance the growth of the institution.

    He enjoined the company to send its workers for training in certificate courses that are practical based, and requested the company’s assistance in purchasing some equipment for the proposed central laboratory and research centre.

     

  • Berger Paints’ new CEO unfolds growth plan

    Berger Paints’ new CEO unfolds growth plan

    THE new Managing Director  of Berger Paints Nigeria, Peter Folikwe, has outlined the company’s strategic growth plan aimed at enhancing shareholders’ value.

    Folikwe, who assumed office in March, said Berger Paints has modernised and upgraded its production with the acquisition of new machinery that will position the Nigerian company as one of the best paints manufacturers in Sub-Sahara Africa.

    He said recent investments in new production facilities, human resources and innovation were all aimed at enhancing the company’s earnings and shareholders’ value.

    According to him, the new production facility is designed to produce top quality and innovative products at reasonable prices, which will help the company to reduce inefficiency and increase the company’s turnover and market share.

    “Specifically, we are on the track to build the first automated paint manufacturing plant in the Sub-Sahara Africa. When completed, it will revolutionise our production and distribution processes, enhance product quality and delivery and reinforce our competitive edge,” Folikwe said.

    He assured that Berger Paints would continue to uphold the sanctity of the post listing requirements of the NSE, which place premium on full disclosure at all times, adding the management of the company is committed to creating better returns for shareholders.

    In his remarks, Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr Oscar Onyema commended the board and management of Berger Paints for sustaining a long legacy of corporate excellence.

    He urged the company’s management to uphold the highest standard of corporate governance in order to be on the Exchange’s Premium Board Index for companies that excel in corporate governance.

    Folikwe spoke during a visit to the NSE, during which he also performed the ceremonial ringing of closing bell for the stock market.

    He had earlier assured shareholders of Berger Paints that the company would sustain its profitability, noting that the performance of the company in the first half of 2015 indicates that the company has been waxing stronger despite the harsh operating environment for manufactures in Nigeria.

    He pointed out that the company is setting up a multi-billion Naira factory to expand its operations while working on innovative products that would not only appeal to Nigerian consumers, but the entire global markets.

    Folikwe reiterated that his pre-occupation is to drive Berger Paints as a brand whose products would continue to define quality and acceptability in Nigeria.

    In a related development, Folikwe called on the government to support the development of the Nigerian real sector by providing enabling environment for manufacturing companies to thrive.

    He said Nigerian manufacturers are contending with several obstacles, which have reduced their competitiveness and limit their growth potential.

    Folikwe urged the Federal Government to address the issues of foreign exchange rate, infrastructural deficit, multiple taxation and enforcement of enabling rules by the Standard Organisation of Nigeria (SON) in order to create the much-needed enabling environment for businesses to thrive.

    “The real sector is the major sector that can drive economic growth and development. But in Nigeria, the sector has consistently suffered a setback in the scheme of things.

     

     

    The sector is bedeviled with myriad of issues which include infrastructural deficits such as bad road, epileptic power supply, multiple taxation, Naira exchange rate volatility and the extent to which the Standard Organisation of Nigeria (SON) is actually tracking and sanctioning those who compromise standard in their product quality. All these increase production cost and force producers to pass the cost to consumers who are already struggling with weak purchasing power. Government should address these issues without further delay,” Folikwe said.

    He added that efforts should also be geared towards instituting a virile consumer advocacy framework in order to promote culture of quality products among manufacturers.

    According to him, quality products are necessary condition for competitiveness in the global market and it enhances consumers’ loyalty and higher turnover.

    He said Nigeria would compete more favourably in the global market if the country leverage on consumer advocacy approach through which consumers of products are made to know that while inferior products appear cheap, they are actually more expensive than quality products in the area of durability and utilitarian value.

     

     

  • Berger Paints’ CEO unfolds growth plan

    Mr. Peter Folikwe, the new managing director of Berger Paints Nigeria has outlined the company’s strategic growth plan, which is aimed at enhancing shareholders’ value.

    Folikwe, who assumed office in March, said Berger Paints has modernized and upgraded its production with the acquisition of new machinery that will position the Nigerian company as one of the best paints manufacturers in Sub-Sahara Africa.

    He said recent investments in new production facilities, human resources and innovation were all aimed at enhancing the company’s earnings and shareholders’ value.

    According to him, the new production facility is designed to produce top quality and innovative products at reasonable prices, which will help the company to reduce inefficiency and increase the company’s turnover and market share.

    “Specifically, we are on the track to build the first automated paint manufacturing plant in the Sub-Sahara Africa. When completed, it will revolutionize our production and distribution processes, enhance product quality and delivery and reinforce our competitive edge,” Folikwe said.

    He assured that Berger Paints would continue to uphold the sanctity of the post listing requirements of the NSE, which place premium on full disclosure at all times, adding the management of the company is committed to creating better returns for shareholders.

    In his remarks, chief executive officer, Nigerian Stock Exchange (NSE), Mr Oscar Onyema commended the board and management of Berger Paints for sustaining a long legacy of corporate excellence.

    He urged the company’s management to uphold the highest standard of corporate governance in order to be on the Exchange’s Premium Board Index for companies that excel in corporate governance.

    Folikwe spoke during a visit to the NSE, during which he also performed the ceremonial ringing of closing bell for the stock market.

    He had earlier assured shareholders of Berger Paints that the company would sustain its profitability noting that the performance of the company in the first half of 2015 indicates that the company has been waxing stronger despite the harsh operating environment for manufactures in Nigeria.

    He pointed out that the company is setting up a multi-billion Naira factory to expand its operations while working on innovative products that would not only appeal to Nigerian consumers but the entire global markets.

    Folikwe reiterated that his pre-occupation is to drive Berger Paints as a brand whose products would continue to define quality and acceptability in Nigeria.

    In a related development, Folikwe had called on the government to support the development of the Nigerian real sector by providing enabling environment for manufacturing companies to thrive.

    He said Nigerian manufacturers are contending with several obstacles, which have reduced their competitiveness and limit their growth potential.

    Folikwe urged the Federal Government to address the issues of foreign exchange rate, infrastructural deficit, multiple taxation and enforcement of enabling rules by the Standard Organisation of Nigeria (SON) in order to create the much-needed enabling environment for businesses to thrive.

  • Berger Paints’ chief urges govt to support real sector

    Managing Director,  Berger Paints Nigeria Plc, Mr Peter Folikwe has called on the government to support the development of the Nigerian real sector by providing enabling environment for manufacturing companies to thrive.

    Folikwe, who assumed the leadership position in Berger Paints in March, said Nigerian manufacturers are contending with several obstacles, which have reduced their competitiveness and limit their growth potential.

    Folikwe urged the Federal Government to address the issues of foreign exchange rate, infrastructural deficit, multiple taxation and enforcement of enabling rules by the Standard Organisation of Nigeria (SON) in order to create the much-needed enabling environment for businesses to thrive.

    “The real sector is the major sector that can drive economic growth and development. But in Nigeria, the sector has consistently suffered a setback in the scheme of things. The sector is bedeviled with myriad of issues which include infrastructural deficits such as bad road, epileptic power supply, multiple taxation, Naira exchange rate volatility and the extent to which the Standard Organisation of Nigeria (SON) is actually tracking and sanctioning those who compromise standard in their product quality. All these increase production cost and force producers to pass the cost to consumers who are already struggling with weak purchasing power. Government should address these issues without further delay,” Folikwe said.

    He added that efforts should also be geared towards instituting a virile consumer advocacy framework in order to promote culture of quality products among manufacturers.

    According to him, quality products are necessary condition for competitiveness in the global market and it enhances consumers’ loyalty and higher turnover.

    He said Nigeria would compete more favourably in the global market if the country leverage on consumer advocacy approach through which consumers of products are made to know that while inferior products appear cheap, they are actually more expensive than quality products in the area of durability and utilitarian value.

    He however assured shareholders of Berger Paints that the company would sustain its profitability noting that the performance of the company in the first half of 2015 indicates that the company has been waxing stronger despite the harsh operating environment for manufactures in Nigeria.

    He pointed out that the company is setting up a multi-billion Naira factory to expand its operations while working on innovative products that would not only appeal to Nigerian consumers but the entire global markets.

    Folikwe reiterated that his pre-occupation is to drive Berger Paints as a brand whose products would continue to define quality and acceptability in Nigeria.

     

  • Berger Paints repositions for industry leadership

    New chairman of Berger Paints Nigeria Plc, Dr. Oladimeji Alo, has given indication that there would be major changes in the company in a bid to reposition it for leadership position in the paints and allied industry.

    The chairman stated this at a special dinner organised by the company in honour of the retiring chairman and directors of the company in Lagos recently.

    As part of measures to reposition the company for the future, four directors who have attained the age of 70 years since the last AGM retired from the board at the 54thAnnual General Meeting held in July. They are Mr. Clement Olowokande (immediate past Chairman), Dr. Raymond Obieri, Engineer Olawale Akinpelu and Mr. Balram Datwani (retired non-Executive Directors).

    The immediate past chairman, Mr. Olowokande, had described the development as a step designed to refresh the board of directors to continue the great task of making Berger Paints a company built to last.

    The new chairman, Dr. Alo, former Director-General of Financial Institution Training Centre (FITC), said the changes in Berger Paints were meant to reposition the company in terms of boosting turnover, reducing cost, firming up processes and systems, all targeted at regaining leadership position in the industry, adding that some of the changes have begun.

    He said the board would continue to need the support of the retired Directors because the wisdom they would bring to the table would continue to be valuable to the company.

    In a goodwill message, Sir Sunny Nwosu, National Coordinator, Independent Shareholders Association, observed that although the Companies and Allied Matters Act (CAMA) did not stipulate retirement age for directors, the retiring directors decided to retire so that fresh blood could be injected into the company.

    He enjoined the new chairman to ensure that more value was added to the assets being left by the retiring directors and also commended the Board for the choice of the new chairman who has distinguished himself in the financial sector and other sectors of the economy.

  • Berger Paints pays N203m dividends

    Berger Paints pays N203m dividends

    Berger Paints Nigeria Plc has started utilizing the net proceeds of its recent rights issue as it has place an order for a fully automated paint manufacturing plant, which will make the company the first to own such plant in Africa. Berger Paints had raised N543 million through a rights issue.

    Addressing shareholders at the annual general meeting of the company in Lagos, chairman, Berger Paints Nigeria Plc, Mr. Clement Olowokande, said the company would soon become the first paint manufacturing company to automate its production facility in West Africa.

    He said the automated plant, which would be complemented by a network of colour world centres to be located in major Nigerian cities, would not only revolutionize production and distribution processes, it would have major positive on costs, product quality, turn –around time and profitability.

    According to him, in a bid to prepare the company for the future, which the automation represents, the board of directors of the company has also embarked on a major upgrade and re-engineering of the company’s organisation and human resource management infrastructure.

    He said efforts are on-going to boost the company’s managerial capacity and make the company more nimble and adaptable to take advantage of emerging opportunities in the economy.

    He added that the implementation of the local content policy in the oil and gas sector holds great prospect for the company, given the strategic alliances and partnership it has formed with some of the largest manufacturers of paints in the world.

    He noted that the company is also embarking on total overhaul of its sales, marketing and distribution systems and infrastructure with a view to regaining its leadership position in the paints industry in the near future.

    “With the steps already taken and others in the pipeline, the future of our company is indeed very bright. The strong interest shown in our stock in the capital market in the last couple of months would suggest that perceptive investors are already noting some of these positive developments and responding accordingly,” Olowokande said.

    Meanwhile, shareholders of the company approved distribution of N202.9 million as cash dividends for the 2013 business year, representing a dividend per share of 70 kobo. Audited report and accounts for the year ended December 31, 2013 showed that profit after tax increased by 30.9 per cent to N251 million as against N192 million recorded in 2012. Profit before tax rose to N356 million in 2013, showing an increase of 25 per cent compared with N284 million in 2012.Turnover rose to N2.7 billion in 2013 compared with a turnover N2.5 billion recorded in 2012.

    Managing Director, Berger Paints Nigeria Plc, Mr. Tor Nygard, said the report was indicative of continuing improvements in the company’s operations, characterised by huge investments in product innovation.

    He noted that in spite of the local infrastructure challenges affecting real sector performance, especially power, the company was able to record growth of 7.75 per cent and 30.9 per cent in revenues and profitability respectively.

    Meanwhile, Olowokande has retired from the board of directors of the company after 45 years stint with the company while a new Chairman, Dr. Oladimeji Alo, a non-executive director has been appointed to replace him.

    Olowokande, a Fellow of the Association of Chartered Certified Accountants (ACCA) of United Kingdom and also a Fellow of the Chartered Institute of Accountants of Nigeria (ICAN) joined the company as a young accountant in 1969 and rose through the ranks to become Managing Director in 1991 and Chairman of the board in 2001.

    The chairman along three other directors, having attained the age of 70 after the last meeting, retired from the board of the company after the 55th yearly general meeting yesterday.

    The board has also appointed Mr. Wole Abegunde to the board of the company. Abegunde who is a Fellow of the Chartered Institute of Stockbrokers of Nigeria and authorized dealer of the Nigerian stock Exchange is presently the managing director of Meristem Securities Limited.