Just like many other local manufacturers, the unprecedented outbreak of the Coronavirus pandemic adversely affected the operations of Meyer Plc, Premium Paint Manufacturer.
However the firm is making efforts to improve its operations while establishing buffers to strengthen its activities and regain market leadership going forward.
Rotimi Alashe, managing director, Meyer Plc told BusinessDay at the company’s 49th Annual General Meeting that the 2020 financial year was turbulent due to various issues including the COVID-19 pandemic as well as the EndSARS protest.
Speaking of how the pandemic affected their operations, He mentioned that the shift in consumer preference and spending affected the company sales and revenue, but the company still managed to grow its profit
Giving an outlook for 2021, Alashe said expectations are high seeing that the pandemic is being subdued, while the company also works on improving market visibility and sales activities.
“Regardless of the situation, we will not compromise on our quality, we also have plans to expand our dealership space to other states while engaging more with our dealers and customers,” he said.
Alashe said while the company works to expand its market reach locally, plans are underway to transact with other African countries in the nearest future.
The impact of the pandemic reflected on Meyer’s operations as its revenue declined 25 percent from N1.10 billion in 2019 to N827 million in 2020. The company’s cost of sales also reduced by 34 percent to N469 million from N708 million in the previous year.
Its other operating income improved by 91 percent to N45.7 million in 2020 from N23.9 million in 2019 while its profit for the year surged to N1.11 billion from a previous loss of N13.5 million.
At the AGM, shareholders approved the re-election of Kayode Falowo as chairman of the Board and Osa Osunde as Director.
During the review year, Meyer paints sold its head office building, from which it earned a profit of N1.78 billion and moved to a new location.
Principal activities of the company includes manufacturing and sale of paint products, coating, adhesives and flooring products.