The equity fundamentals of Zichis Agro-Allied Industries Plc remain robust and growing, despite recent equity price volatility on the local trading floor.
The Executive Director, Finance and Strategies, Chris Ogbaisi, stated this while disclosing that the firm is aggressively ramping up production capacity and expanding its land bank, with animal feed production scaling up to five tonnes per hour to rake in an additional N540m in monthly revenue.
According to Ogbaisi, the recently upgraded five-tonne-per-hour animal feed mill has commenced operations and is projected to generate over N540m in monthly turnover. He maintained that this operational development is part of the company’s medium-to-long-term value creation roadmap aimed at improving shareholder returns and boosting the outlook for the Zichis brand.
Ogbaisi confirmed that the company has also commenced the clearing of a 2,000-acre farm estate, a strategic move timed to take advantage of the current planting season and expand the agricultural base that the animal feed business draws from.
These disclosures come against the backdrop of a six-session losing streak in Zichi’s shares on the Nigerian Exchange, which the Executive Director attributed partly to profit-taking.
Giving a breakdown of the production and revenue projections, Ogbaisi explained that the facility has an hourly production capacity of five tonnes and is projected to produce about 1,200 tonnes monthly based on 12 operating cycles across 20 working days. This output translates to approximately 40,000 bags of animal feed per month, with each bag priced at N13,500. At full production capacity, the operation is expected to generate a projected monthly turnover exceeding N540m.
In addition to the feed mill ramp-up, Ogbaisi disclosed that the company’s key divisions are now in full operation, adding another stable revenue stream to the company’s diversified agricultural and agro-industrial portfolio.
He further confirmed that the Managing Director, Anthonia Akabusi, retains above a 50 per cent holding in the company, despite a recent share sale transaction which was filed with the Nigerian Exchange in line with regulatory requirements.
