Notore Chemical Records N10.3bn Loss as Earnings Sink

By Dipo Olowookere

On Tuesday, December 31, 2019, the Nigerian Stock Exchange (NSE) published the audited financial statements of Notore Chemical Industries for its full year ended September 30, 2019.

However, a brief analysis of the results by Business Post indicated that things were still not rosy for the company, which has its factory in Port Harcourt, Rivers State.

For instance, the revenue generated by the firm in the period under review depreciated to N21.4 billion from N26.8 billion, while the cost of sales increased to N17.5 billion from N17.2 billion, with the gross profit reducing to N4.0 billion from N9.6 billion and operating profit going down to N3.4 billion from N9.2 billion.

This was mainly influenced by the slight increase in the administrative expenses to N6.6 billion from N6.2 billion, though the other income marginally rose to N6.5 billion from N6.4 billion, while the selling and distribution expenses dropped to N463.3 million from N530.8 million.

According to the results, Notore Chemical raked the sum of N19.7 million from finance income as at FY ended September 30, 2019 compared with the N4.2 million as at FY ended September 30, 2018, while the finance cost jumped to N13.7 billion from N12.8 billion.

In the period under review, the company declared a loss before tax of N10.3 billion against N3.5 billion a year earlier and a loss after tax of N5.8 billion in contrast to N1.9 billion 12 months ago.

The firm enjoyed a deferred income tax of N4.5 billion in the period under consideration, higher than the N1.6 billion it similarly had in the corresponding period of 2018.

A look at the earnings per share (EPS) showed a -N3.57 compared with -N1.18 in the previous financial year.

Notore Chemical was established to manufacture and deal in nitrogenous fertilizers and all substances suited to improving the fertility of soil and water. The company fully rehabilitated a 500,000 metric tonne Urea Plant in Onne, Rivers State and commenced commercial production in the first quarter of 2010. It is a subsidiary of Notore Chemical Industries (Mauritius) Limited.