Livestock Feeds has made an impressive turnaround to profit, recording highest gain in seven years. This signals a halt to the recurring losses the agricultural firm recorded in two straight years.
The firm, which operates in the agricultural sector, recorded a share price of N5.89 on Jan 28, a drop from N6.03 in the previous day.
Livestock Feeds recovered to an after-tax profit of N1.75 billion from recurring losses in 2022 and 2023.
However, Femi Oke, the chairman of the All Farmers’ Association of Nigeria said in 2024, nothing really happened in the livestock sub-sector of the economy.
“The Livestock sub-sector has been experiencing increased prices on feed but there should be an improvement in 2025 if the government takes action,” he said.
Maize and soybeans are essential for poultry and pork feed, but rising costs are negatively affecting livestock farmers’ productivity which is pushing them to seek alternatives.
The firm’s cost of sales increased by 84 percent to N35.2 billion in 2024.
The Federal Government and the African Union-Interafrican Bureau for Animal Resources Resilient African Feed and Fodder Systems Project have established a multi-stakeholder platform to provide producers with easy access to high-quality animal feed at competitive prices.
This was stated in a release from the Ministry of State for Agriculture and Food Security which described the RAFFS Project as an initiative responding to the Triple C crises – COVID-19, Climate Change shocks, and the Russia-Ukraine Conflict that had severely impacted African feed and fodder systems.
Aliyu Abdullahi, minister of state for Agriculture and Food Security referred to the launch of the MSP as a strategic move that aligned with the government’s commitment to sustainable food production and national food security.
Read also: Livestock Feeds earnings per share rises to 13-year high
“The platform will not only facilitate access to feed for producers but will also create an integrated self-sufficiency system that promotes fair competition among suppliers,” he stated.
The minister noted that supporting the livestock industry was a crucial factor in increasing self-sufficiency in animal products while adding that its implementation would ensure proper nutrition, promote sustainable practices, and empower livestock producers as an integral component of the national food security system.
Tunde Amole, the country representative of the International Livestock Research Institute, said Nigeria had spent huge budget resources to import animal feed ingredients such as corn, soybean, and wheat to serve domestic production.
He urged increased local raw material sourcing for the production of animal feed to mitigate supply concerns and ensure sustainable development.
Livestock Feeds’ revenue grew to N41.7 billion in 2024 from N20.4 billion in 2023.
Ikeja, Aba tops the revenue contributor with 43.2 percent, followed by Aba with 39 percent, Northern operation, and Onitsha operations which contributed 11.8 percent and 5.7 percent respectively.
Ikeja contributed the sum of N18 billion to the total revenue while Aba (16.4 billion), Northern operation(4.92 billion), and Onitsha operations(N2.37 billion).
The company (all segments) produces animal feeds which is 100 percent of its turnover. Other products include Veterinary Drugs which are bought from other companies for marketing and sales
Livestock Feeds market capitalisation stands at N18.1 billion during the reviewed period.
The firm paid the sum of N1.05 billion as income tax expense in 2024 where company income tax stood at N838.4 million, expense during the year stood at N126.9 million and education tax charge stood at N83.8 million.
Livestock Feeds net debt grew to N17.8 billion from N11.2 billion during the comparable periods.
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