The Managing Director of Berger Paints Nigeria Plc., Mr. Peter Folikwe has said that For the second quarter (Q2) of 2016 the company is targeting N1.014 billion as revenue and profit after tax of N111 million. Folikwe made this known at the company’s Facts Behind the Figures (FBF) held in Lagos at the beginning of the week, explaining that the current drop in their financial performance for the first quarter ended March 31, 2016 was due to foreign exchange scarcity, increase in raw material prices.
“Due to scarcity of foreign exchange we had to resort to local sourcing of raw materials at exorbitant price” he said, pointing out that major increase in current company marketing activities to gain visibility and general lull in economic activities due to delay in passage of 2016 budget also depleted profit. The MD However noted that 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”.
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.