of the company’s first quarter running from April to June, its borrowing swelled by N164 billion from the closing figure of N158.7 billion at the end of its full year operations in March 2022.
It grew sales by over 45 percent in the quarter to almost N340 billion, representing additional revenue of N106 billion generated within the period but inability to convert the additional earnings into profit was the problem. Investments in routes to consumer redistribution resulted in 8,000 new outlets in the first quarter while its fertilizer blending plant in Kaduna kicked off with a 90-tonne per hour capacity.
Other cost increases squeezed margins down the line, including selling and distribution expenses that rose by one-half to N4.6 billion. An increase of 52.6 percent in administrative costs to N10 billion added to the pressure on margins.