Notore Chemicals records 6% rise in Q3 revenues despite of COVID-19 challenges

NIGERIA – Notore Chemical Industries Plc, one of the leading fertilizers and agro-allied in Africa, has released its unaudited results for Q3 of 2020, revealing a 6% rise in operating incomes.

The agro-allied company that specializes in the supply of premium fertilizer and in agricultural extension services noted that it was able to record a rise in profits despite operating in a harsh economic environment occasioned by the COVID-19 pandemic.

The company’s gross revenues stood at US$45.90 million in Q3 of 2020, a six percent year-on-year rise when compared to the US$43.45 million achieved during the same period in 2019.

Notore chemical’s operating income rose to US$9.99 million in Q3 of 2020, a 13 percent year-on-year increase when compared to the US$8.80 million recorded in Q3 of 2019.

Notore said the gradual revenue growth is attributable to some improvements in plant reliability derived from the ongoing TAM (Turn Around Maintenance) programme which has begun to impact positively on plant operations.

These improvements according to Notore, have resulting in some modest increases in production volumes and production on-stream days during the period.

It further added that it projects significant increases in production outputs and revenues once the TAM is completed at the end of December this year.

The fertilizer manufacturer however, noted that its debt service rose to US$31.33 million in Q3 of 2020 from US$27,54 million incurred in Q3 2019.

It attributed the rise to additional term borrowing to finance the TAM programme and the impact of naira devaluation on foreign currency-denominated loans.

On the impact of the coronavirus (COVID-19) on its operations, the company said it has continued to weather the storm during the period and recorded impressive sales during its 2020 financial year.

The positive financial results comes at a time when Notore Chemicals has just finished installing and commissioning a brand new 2,000 metric tons per day NPK Blending Plant.

The blending plant according to Notore’s Group Managing Director, Mr. Onajite Okoloko, has capacity to produce various crop specialty blends of NPK fertilizer.

Additionally, the company has entered into partnership with the NAIC-NPK LIMITED during the period for the blending, packaging, sale and distribution of NPK fertilizer for the year 2020 farming season under the Presidential Fertilizer Initiative (“PFI”).”

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE HERE

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.