• Tuesday, December 05, 2023
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High finance cost takes toll on Notore Q3 profitability

High finance cost takes toll on Notore Q3 profitability

Notore Chemical Industries Limited has released its unaudited interim financial statements for the mine months period ended September 30.

Ohis Ohiwerei, Group Managing Director, Notore Plc in statement acknowledged the company’s resilience, noting “While we successfully addressed the gas supply limitation, the impact of earlier challenges lingers in our financial performance. Notore is diligently working to recover the lost revenues from previous quarters.

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“Our dedicated teams are implementing strategic measures to optimise production, reduce costs, and explore avenues for revenue generation. These efforts and our renewed gas supply provide a solid foundation to navigate the remaining challenges and move towards financial stability.”

Notore recorded revenue of 12.71 billion, though down from N32.94billion in same period of 2022. The company’s net finance cost rose from nine months 2022 low of N13.005billion to N51.528billion in nine months 2023, thereby taking significant toll on the company’s profitability.

Ohiwerei further emphasised, “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.”

On its outlook, Ohiwerei said: “Looking forward, Notore is concentrating on strategic initiatives to enhance productivity, operational efficiency, and financial resilience. Addressing domestic priorities, including ensuring food availability, is integral to Notore’s commitment. As a pivotal player in the fertilizer industry, Notore remains dedicated to ensuring a stable supply chain and supporting the Federal Government’s unwavering commitment to boost the agricultural sector, thereby ensuring food security.

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“Notore stands resolute as a powerhouse strategically positioned to harness the boundless opportunities stemming from the surging demand for fertilizers and agricultural products in both the domestic and West African markets. Armed with unwavering determination and a meticulous approach, the company is primed not just to meet but to exceed the escalating food demands of the nation and the entire region,” Ohiwerei said.