Berger Paints Nigeria Plc has attributed the drop in their financial performance for the first quarter ended March 31, 2016 to foreign exchange scarcity. The Managing Director Mr Peter Folikwe disclosed this to stockbrokers and financial press at the presentations of the company facts behind the figures on the floor of Nigerian Stock Exchange in Lagos.
According to him “margin drop largely as a result of increase in raw material prices. Scarcity of foreign exchange as we have to largely resort to local sourcing of raw materials at exorbitant price, he also pointed out that major increase in current company marketing activities to gain visibility depleted profit. And general lull in economic activities due to delay in passage of 2016 budget.
On their business expansion, Folikwe said Berger Paints is on track to deliver the first automated paint manufacturing plant in Sub-Sahara Africa. “We are doing all that is possible to commission the new plant this year. When operational, the new plant would reduce response times, and improve our product quality, making us compete favourably with imported brands”.
For the second quarter 2016 financial forecast, he said they are targeting N1.014 billion revenue and profit after tax of N111 million.
On his part the chairman of the company Dr Oladimeji Alo noted that despite the first quarter result, they have revamped their route to market initiatives to drive aggressive sales.
“Our outsourced business partners are being provided massive sales and marketing support to cause a desirable change in trade” Dr Alo stressed that with the passage of budget of change that focus more on capital project as against recurrent, they hope to leverage on businesses in the constriction segment of the economy.