Notore Records N8.2bn Revenue, N2.04bn Operating Profit in Q1

A leading vertically integrated agro-allied and chemicals group, Notore Chemical Industries Plc has recorded a N2.04 billion operating profit in the first quarter(Q1) ended December 31, 2019, which marks the beginning of the 2020 financial year(2020FY) of the company.

According to the unaudited financial statement for Q1, Notore said it recorded revenue of N8.18billion compared to N4.32billion for the corresponding period in 2019 FY.

According to the company, the increase in revenue was due to improvement in the plant’s reliability, hence an increase in urea production volumes by 83 per cent from 44,076 metric tonnes in Q1 2019 FY compared to 80,777 metric tonnes in Q1 2020 FY).

Notore’s operating profit in Q1 202FY, is however, a decline of by 39 per cent from N3.34 billion in Q1 2019 FY due to a decline of 78 per cent in other income. Notore recorded a loss of N1.39billion during the Q1 2020 FY and a net finance cost of N3.43billion.

Noting that opportunities for better performance are high as the domestic fertilizer market is yet to reach its full potential, the company said: “The fertilizer market in Nigeria during the period under review was robust as Notore sold all the urea that it produced during the period in both domestic and international fertilizer market. Furthermore, the demand for urea and compound fertilizers, such as NPK, from the West African markets and neighbouring countries bordering the northern part of the country is also quite significant.”

On the outlook for the 2020 financial year, the company said it expects to exceed its 2019 financial year urea production figures and is also working on various financial initiatives to reduce its finance cost.

It stated further that: “The projected cost savings from Notore’s de-leverage is expected to further boost its profitability, in addition to a forecasted increase in production as Turn Around Maintenance (TAM) progresses. Furthermore, Notore believes that the current federal government policies in the fertilizer space and demand for NPK and NPK specialty blends are quite favourable for its business, consequently, Notore will be producing a significant quantity of NPK and NPK specialty blends this FY to diversify its revenues”.