Berger Paints Nigeria Plc has expressed optimism that its investment in a new facility as well as product innovation would grow sales and profitability in a sustainable manner.
The Managing Director, Berger Paints, Peter Folikwe, stated this during the company’s ‘Fact Behind the Figure’ held at the Nigerian Stock Exchange (NSE), in Lagos. Folikwe said the company would focus on increasing earnings and profitability by leveraging its new automated factory to increase production output.
According to him, Berger Paints also seeks to increase its market share, optimise return on investment (ROI), and implement risk management culture among others, to ensure sustainable growth and returns to investors.He pointed out that top-notch and experienced management, high quality products, efficient market and strong distribution network, effective utilisation of modern IT Technology, and strong brands are factors that enhance Berger Paints’ competitive edge.
Folikwe added that effective franchise growth and deployment of POS machine were among the key drivers that will boost the company’s profitability.“We shall increase innovativeness and deepen routes to market to ensure that our products are available in most of the geo-political zones. Our outsourced business partners are being provided massive sales and marketing support to cause a desirable change in trade,” he said.
Also, Berger Paints chairman, Abi Ayida, said the company would review its business model to improve its processes, and take advantage of investment opportunities in Nigeria irrespective of the challenges in the operating climate. He assured the Eexchange of Berger Paints’ willingness to support some of its activities that fall under its Corporate Social Responsibilities (CSR).
The Chief Executive Officer, NSE, Oscar Onyema, commended the management of Berger Paints for adhering to the post-listing requirements, one of which requires regular provision of information by every quoted company to enable investors make investment decision. He advised the company to sustain its strategic and operational efforts to sustain value for shareholder.
Onyema, who was represented by the Executive Director, Regulation, Ms. Tinu Awe, explained that the Exchange remained committed to partnering with quoted companies as stakeholders in the market ecosystem. According to Onyema, the Exchange aggregates all issues affecting quoted companies, including corporate governance and tax reform and play pivotal role to ensure smooth operation of the companies.
Meanwhile, Berger Paints said it is targeting N3.492 billion as revenue for the full year 2018, which represents 13 per cent increase over N3.092 billion recorded in 2017. The company also projects a 23 per cent increase in gross profit to N1.568 billion from N1.273 billion in 2017, while the company expects to post N341 million as profit before tax in 2018.The company added that it remain focused in its medium and long-term investments to outperform competition in its market.
Source: G Business