CFAO NIPEN to diversify into household, hygiene products’ manufacturer
…Records N5.075 billion as revenue
CHAIRMAN and Managing Director of Nigerian Ball-Point Pen Industries (NIPEN), Stephen Faderin, said the company has concluded plans to diversify into the production of household and personal hygiene products to bolster its investment in the country.
Speaking at the organisation’s 40th yearly general meeting in Lagos, Faderin said that the company recorded increased revenue of N5.075 billion in 2014 against N4.453 billion in 2013.
“We have commenced preliminary exploration of the possibility of adding a number of household and personal hygiene products into our product range. We have also commenced the evaluation of additional investment to improve our capacity in crate production,” Faderin revealed.
He stated that the company improved its assets by 15.9 per cent through additional investment of N186 million in property, plants and machinery thereby increased its revenue by 13.9 per and raised its shareholders’ funds from N1.714 billion in 2013 to N2.277 billion in 2014.
According to him, a 57 per cent increase in marketing and distribution costs as well as a substantial investment dedicated to anti-counterfeiting efforts however, led to a an expected 40 per cent reduction in profit before tax for the year.
Faderin, who is also the Group Managing Director and Country Manager of CFAO Group in Nigeria said that the company witnessed “better market acceptance in spite of some technical issues experienced in product development.”
He said: “our strategic diversification into plastic crate production has been very helpful in moderating the effect of lower profit contribution from the pen category. Plastic crates recorded 1.4 million units in 2014, a volume growth of 56 per cent over the 900,000 units produced in 2013. We believe that there remains ample opportunity to do even better in this category as our current production is constrained by available capacity. The home plastics category recorded a modest growth of 12.6 per cent”