Berger Paints Plc has recorded 122 per cent growth in net earnings for the financial year ended December 31, 2015. In a filing with the Nigerian Stock Exchange, the firm posted a profit after tax of N330.316 million as against N148.808 million recorded during the comparable period of 2014, representing a growth of 122 per cent. Similarly, profit before tax grew from N249.258 million posted the previous year to N565.212 million during the year under review, accounting for an increase of 127 per cent.
The company’s revenue, however, dropped marginally by two per cent to N3.022 billion in the review period of 2015 from N3.082 billion in the corresponding period of 2014. Berger Paints recently embarked on the outsourcing of all its depots and intends to appoint franchisees in other locations of the country where the company does not have presence.
The company said in a notice to the Exchange that the initiative became necessary as part of its strategy to enhance accessibility and visibility of its products.
It noted that the strategic move served to enhance the efficiency of the company and improve its bottom line. “In addition, it will enhance proximity of its products and help to ensure the availability of genuine Berger Paints products countrywide.
“The company’s plans to build the first automated paint manufacturing plant in sub-Saharan Africa are ongoing and the plant has been scheduled for commissioning in 2016,” the management noted.
Addressing the Exchange’s management recently, Berger Paint’s Managing Director and Chief Executive Officer, Mr. Peter Folikwe, said the company acquired new machinery adjudged to be one of the best in sub-Saharan Africa.
According to him, the new machine, which runs into millions of dollars, was designed to produce top quality and innovative products at reasonable prices. He noted that the automated machine is expected to reduce inefficiency, increase the company’s turnover and market share.
Folikwe stated that the company had acquired the machine to ensure innovative products at competitive prices. He explained that Berger Paints had embarked on other growth strategies such as strengthening its managerial capacity, restructuring of sales, distribution, marketing and upgrade of plants in order to boost the top and bottom lines for enhanced shareholder value. “Specifically, we are on the track to build the first automated paint manufacturing plant in sub-Sahara Africa.
When completed, it will revolutionise our production and distribution processes, enhance product quality and delivery and reinforce our competitive edge. “As a stakeholder in the stock market, Berger Paints identifies with all the efforts being made by the Exchange to attract more investors both retail and institutions to participate in the market. In no distant time, the Exchange would celebrate more listing of blue chip companies.
As a proud winner of the prestigious Annual President’s Merit Award of the Exchange several times in the past, Berger Paints shall continue to uphold the sanctity of the post listing requirements, which place premium on full disclosure at all time,” he said.
Source: New Telegraph Newspaper