African Paints Nigeria Plc has achieved a turnover of N51 million its 2009 operators, as against N42 million recorded in 2008 while the company’s gross profit grew from N7.5 million to N9.5 million during the year under review.
Addressing shareholders during the 33rd yearly general meeting of the company in Lagos yesterday the Chairman of the company Mr. Gbenga Akinnawo explained that the percentage increase in turnover is 19.6 per cent while Gross profit increased by 25.7 per cent.He told shareholders that the company’s interest expense currently stood at N19.5 million as at December 2009, representing 40 per cent reduction from N33.2 million in 2008.
He noted that the improved performance was a confirmation of the company’s effort to expand and turnaround the company for profitability.He pointed out that the first phase of the company’s repositioning strategy has been completed.This, according to him followed a successful conclusive of a placement of 130 million ordinary shares of the company with Charring management limited, the company’s core investor.
He said that the introduction of Charring management to the share holding of the company would boost investors’ confidence as enhance the prospect of the company, adding that it has also enabled the company to reduce its indebtedness significantly and secure viability or the business in the short term.
“I am delighted to announce that the first phase of African Paints turnaround strategy has now been completed with a successful conclusion of the placing of 130 million ordinary shares of the company with the core investor, Charring management to the shareholding of our company is a strong vote of confidence and enemies the prospect of African Paints.“The company’s year on year financial performance reflects the on-going implementation of the new business plan and strategy. Significant improvement include turnover of N51 million and ( a resulting reduction in our loss position to N31.6 million ) and gross profit of N9.5 million; a 19.6 and 25.7 per cent growth on last year’s performance.
In addition, the company’s interest expense now stands at N19.5 million as at December 31, 2009 representing 40 per cent reduction from December 31, 2008.Akinnawo expressed worry over the neglect meted over to the manufacturing, which he described as the pivoted to the economic development of the country over the years.“Infrastructures decay, most particularly power and roads networks.
Continues to have a negative impact on companies and their operating capacity. The paint industry remains one of the most competitive industries in Nigeria , and continues to be plagued by the twin evils of adulteration and low-priced sub-standard products”He urged various companies under the sub-sector and relevant agency to intensify efforts and be proactive to ensure that the problem of adulteration and sub-standard products is eliminated in the industry to enhance product quality and profitability.