The Chairman, Livestock Feeds Plc, Mr. Larry Ettah, has said the company is expected to record improved performance this year, following strategic improvements in its operations, according to a statement by the firm.
“The board and management remain confident that with increased focus on improved brand building, product portfolio expansion, increased production capacity and cheaper cost of funds, the company is poised for improved performance,” Ettah told shareholders in Lagos at the company’s yearly meeting.
The company had announced that in the 2013 financial year, its profit before tax rose by 28 per cent to N282.8m, while its profit after tax, at N210.7m, represented a 46 per cent growth over the figure for 2013. It said its earnings per share also improved; rising by 46 per cent from N12 in 2012 to N17.56 in 2013.
Ettah, who said the company’s sales revenue was up by 13 per cent to N6.1bn last year, said he was confident, however, that the positive performance would be improved upon.
He explained, however, that the livestock feeds industry had some lows last year.
For instance, he said, “The 20 per cent growth projected for the poultry industry did not materialise due largely to factors such as poor quality of day-old chicks, persistent egg glut, unattractive prices of chicken products, dumping and smuggling of imported chicken, which led to the closure of some poultry farms and premature disposal of actively laying birds.”
Despite the challenges that operators battled with and which threatened their growth, Ettah stated that the industry recorded several positive achievements such as the availablitity of vegetable protein materials at reasonable prices for a good part of the year. This, he said, was in contrast to the severe bout of scarcity witnessed in 2011 and 2012.
He added that the growth in the industry was expected to be driven by the poultry industry as availability of quality day-old chicks improved through the huge private investments in hatcheries in some parts of the country.
On the plans to improve operations, Ettah was quoted as saying, “The installation of the 12mt/hr feed milling machine in the Ikeja Mill is planned for completion in the course of the year. The new plant will enhance capacity and production of premium quality poultry feeds to meet the demands of our customers.”