Key Takeaways:
- Noba Africa, a prominent agribusiness firm, reported substantial growth amidst a challenging economic environment in Nigeria.
- The company faced significant trade volume decreases due to the naira note redesign policy and other economic factors but achieved a 32% revenue increase from the previous year.
- The company is setting ambitious growth targets and seeking additional funding to capitalize on upcoming opportunities.
Noba Africa’s Annual Report
Noba Africa Agro Allied Limited, a leading agricultural solutions provider in Africa, has released its annual report for the financial year 2023. The company, known for its commodity trading and seed production, has navigated a year marked by resilience and strategic adaptation amidst various economic challenges.
Overview of Noba Africa’s Operations
Noba Africa operates in three locations across two states in Nigeria and is recognized as a major commodity supplier by top food processing companies. The company’s business portfolio focuses on commodity trading and seed production, primarily with paddy rice, soybeans, sesame, and sheanut.
Financial Performance and Challenges
The year 2023 tested the resilience of businesses, including Noba Africa, due to the naira note redesign policy, fuel price hikes, election uncertainty, and foreign exchange ban lift. These factors significantly impacted the company’s trade volume and profitability. Despite these challenges, Noba Africa reported a net revenue of NGN 2,095,985,183.70, marking a 32% increase from the previous year but a 41% decrease in EBITDA.
Strategic Response and Recovery
The company’s strategic response to the challenging economic conditions included diversifying payment options, optimizing logistics, and enhancing trade relations. The company reported a strong performance in Q3, hitting 100% of its trade target and surpassing its revenue target by over 7%. By the end of the year, Noba Africa achieved a solid return on investment (ROI) of 38.67% despite the challenges.
Future Outlook and Growth Plans
The company has set a growth target of 25% year-over-year for revenue and trade volume. The company received significant expressions of interest from stakeholders and secured NGN 128,000,000 in advanced payment for paddy rice procurement. To address a funding gap of NGN 150,000,000 and capitalize on upcoming opportunities, Noba Africa is actively seeking investment and partnerships.
Read the full report here.
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