The revenue of Notore Chemical Industries, a fertiliser and agro-allied company in Nigeria, has dropped by 61.1 percent in the first nine months of 2023, according to BusinessDay analysis.
Findings from the company’s financial statement showed that the revenue plunged to N12.7 billion in the first nine months of the year from N32.9 billion in the same period of 2022.
A breakdown of the data shows that revenue from NPK declined by 60 percent to N1.02 million, urea and other chemicals dropped to N10.8 billion from N29.4 billion, ammonia fell to N165.3 million from N165.7 million and infrastructure services declined to N719.0 million from N771.7 million
The company recorded a loss after tax of N66.23 billion from N949.6 million. It reported also a gross loss of N5.58 billion from a gross profit of N9.86 billion.
Its administrative expenses increased to N9.45 billion from N5.17 billion. It recorded a foreign exchange loss of N4.49 billion from no loss in 2022.
Other income also recorded a decline of 92.6 percent to N556.8 million recorded in 2023. Loss per share totalled N41.09 from N0.59.
Net cash from operating activities recorded a loss of N7.51 billion from a profit of N13.59 billion.
Net cash from investing activities also recorded a loss of N2.24 billion and net cash from financing activities totalled N7.714 billion.
Cash and cash equivalents at the end of the period recorded a loss of N3.16 billion from a loss of N1.1 billion recorded in 2022.
“While we successfully addressed the gas supply limitation, the impact of earlier challenges lingers in our financial performance,” Ohis Ohiwerei, group managing director at Notore Chemical, said in a statement.
He said Notore is diligently working to recover the lost revenues from previous quarters.
“In the latter part of the third quarter of 2023, we resolved the gas supply limitation and gradually resumed production. I am confident in the company’s steadfast commitment to finding innovative solutions even in the most challenging circumstances, paving the way for growth initiatives in 2024.”
Earlier in December, the company got approval to free float compliance extension requests for two years (2023- 2025).