Greif Nigeria Plc has decided to suspend operations in the country. The firm’s Chairman Adebayo Olowoniyi disclosed this in its 2018 full-year statements released today.
Greif Nigeria has been operating well below operating costs, even below direct material costs, and sees no signs of improved market conditions. Therefore, we have decided to stop operations with immediate effect. The coming months we will investigate on if and/or how we can continue with Greif Nigeria.
Adedayo also revealed that the company had tried to stay afloat through price increases and embarking on cost reduction initiatives. Halfway through its financial year, Greif Nigeria Plc lost a key customer and had to reduce prices to retain volumes, leading to an underecovery of costs.
We have tried to navigate this difficult business terrain by recovering our costs through multiple price increases to our customers, cost reduction initiatives and improved efficiencies. However, we have not succeeded in that. We have lost our most important customer, halfway through the year and had to reduce prices to retain volumes, not fully recovering costs
The company in June last year, had notified the NSE of its intentions to shut down its operations in Koko, Delta State, and Kaduna State.
Greif Nigeria Plc closed today’s trading session at N9.10, unchanged from the prior day.
Results for the twelve months ended October show revenue fell from N1.4 billion in 2017 to N534 million in 2018. The firm recorded a loss before tax of N245 million in 2018, as against a profit before tax of N77.5 million in 2017.
About the Company
Greif Nigeria Plc was incorporated as a limited liability company on January 20, 1940, with the name, Metal Containers of West Africa Limited. The name was subsequently changed to Van Leer Containers (Nigeria) Limited on July 4, 1969, and then, Van Leer Containers (Nigeria) Plc.
The Company’s name eventually became “Greif Nigeria Plc” by a special resolution on May 12, 2004.
The principal activities of the company are the manufacturing and marketing of metal drums and plastic containers.