McNichols eyes N265.62m as Right Issue opens

The 531,242,609 ordinary shares Right Issue programme of McNichols Consolidated Plc (McNichols) at 50kobo per share opened on August 9 and will close on August 31.

The Right Issue is on the basis of 17 ordinary shares for 23 ordinary shares held as at September 16, 2022.

Futureview Financial Services Limited is the lead arranger of the Right Issue by McNichols.

The issuer will use the proceeds to procure a new cube sugar plant, packaging equipment to meet the growing needs of customers, procure distribution vehicles, expand depot and operating location, and improve working capital to increase the company’s sales and profitability.

McNichols specialises in the production and sale of food and beverage products.

The Food Products segment encompasses custard products, farm produce, and offerings from the pancake house.

The Beverages segment caters to sugar products, chocolate-flavored milk, tea, and various milk-based products.

These goods are distributed through a network of reputable distributors across Nigeria.

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The Company demonstrated significant growth in its 2022 financial performance across key metrics. Revenues surged by 8percent to reach N834.02 million in 2022, a notable increase from the N773.56 million reported in 2021.

This growth was primarily fuelled by a substantial 68percent increase in turnover within the beverage segment.

Moreover, enhanced supply chain management led to cost savings and streamlined operations, contributing to a 14percent rise in operating profit during FY 2022.

Profit before tax saw a remarkable 45percent increase, rising from N17.58 million in FY 2021 to N25.57 million. Net profit also experienced healthy growth, ascending by 38percent from N14.30 million in FY 2021 to N19.76 million in FY 2022.