Zichis Agro-Allied Industries Plc is ramping up production capacity and expanding its land bank, with the company’s animal feed production scaling up to five tonnes per hour, raking in additional N540 million in monthly revenue.
According to the Executive Director, Finance & Strategies, Mr. Chris Ogbaisi, the recently upgraded 5-tonne-per-hour animal feed mill has commenced operations and is projected to generate over N540 million in monthly turnover.
This development, he says, is part of the company’s medium-to-long term value creation roadmap for improved shareholder returns and 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.
The disclosures come against the backdrop of a six-session losing streak in Zichis shares on the Nigerian Exchange (NGX), which the Executive Director attributed partly to profit-taking.
According to Ogbaisi, the animal feed mill has been upgraded from a 2-tonne-per-hour capacity to a 5-tonne-per-hour facility, which is now fully operational.
Explaining the production and revenue projection, Chris said the facility has an hourly production capacity of 5 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 N540 million.
In addition to the feed mill ramp-up, Ogbaisi disclosed that the company’s key divisions in full operations, adding another revenue stream to the company’s diversified agricultural and agro-industrial portfolio.
Ogbaisi confirmed that the Managing Director, Mrs. Anthonia Akabusi retains above a 50% holding in the company, despite the recent share sale transaction which was filed with the Nigerian Exchange (NGX) in line with regulatory requirements.
The Executive Director advised shareholders and prospective investors to be cautious of what he described as coordinated social media reports. “Manipulators are pulling strings to ensure the price comes down using social media — discouraging investors so that they can take advantage and buy,” he said.
“The fundamentals of our equity remain strong and growing. We’re building a brand that rewards shareholders commensurately. Our increasing earnings signal better days ahead,” Ogbaisi added.
Zichis stock closed at N29.13 per share on Tuesday, May 19, increasing by N2.64 or 10% gain over its previous closing price of 26.49, ending six-session consecutive decline that compressed the stock valuation.
At its recent peak, the stock had traded above N40 implying a price surge from around N25 to above N40 in a short time before moderating to its current level.
GTI’s Head of Research, Abiodun Ogunniyi, flagged Zichis as one of three stocks — alongside Aradel and The Initiates Plc — where he expects selective bargain-hunting interest to emerge this week following recent profit-taking pressures.
“This week, we expect selective interest in The Initiates Plc, Zichis Agro-Allied Plc, and Aradel Plc following recent profit-taking pressures, alongside a potential rerating of Meyer,” Ogunniyi said, characterising overall market sentiment as “cautiously positive.”
For investors assessing the stock, the core question is whether the operational milestones Ogbaisi has outlined — the 5-tonne feed mill now running, headstones in operation, and the 2,000-acre expansion about to break ground — will translate into audited financial outcomes. The monthly turnover projections of N540 million, if realised and sustained, would represent a materially significant revenue line for a company of Zichis’ current size and market capitalisation.
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