The spate of infrastructural and industrial revolution presently going on within the Lekki corridor leaves no one in doubt of the fact that Lekki is poised to live up and possibly surpass the expectations that comes with being touted the new Lagos. This is following the setting up of a cashew processing plant by construction giant Messrs Julius Berger in its diversification foray in the agriculture sector.
According to a press release by the foremost construction firm, the cashew processing plant will be commissioned next month as the company wraps up its plan to diversify into agro-processing industry in the agriculture sector of the Nigerian economy.
Read more: Atiku Vs Wike, who blinks first?
The plant which is sited at Epe according to a February regulatory filing was earlier scheduled to be unveiled by the second quarter of the year. The firm strongly hopes that the new processing factory ‘shall form the cornerstone’ of its diversification move in the agriculture sector.
According to the company, the decision to diversify away from construction its core business and major forté became inevitable following a tough fiscal year in 2020 when the corona virus pandemic disrupted operations. This led to an earnings deplete, leading to an after-tax profit crumble by 85 percent to N1.4 billion, the company’s weakest profit in 4 years.
The initiative got underway when in September 2020, the company’s Board of Directors after meeting gave approval for the company’s proposal to delve into agro-processing.
Reports according to its unaudited half-year 2022 earnings, revenue jumped by about a half to N218.2 billion and net profit by 26.1 percent to N6 billion.
‘Julius Berger reiterates that our diversification direction would support the continued success of the Julius Berger Group in the future and align with the strategic objectives of the Government to stimulate value creation in Nigeria’. The company’s note to the Nigerian Exchange on monday said.
Currently Julius Berger has a market value of over N41.4 billion while its outstanding shares are 1.6 billion priced at N25.9 per unit.
