NGIP Agmark Limited (NGP) has announced notable growth in its financial performance for the first half of the year ending June 30, 2024, attributing this success primarily to the exceptional surge in cocoa prices on the global market and its comprehensive operational strategies.
In a public announcemenon Friday 13th September, 2024, the company revealed a staggering 142% increase in revenue, soaring to K188.6 million from K77.9 million in the same period last year.
This remarkable growth is reflected in the company’s profit after tax, which skyrocketed by 367% to K8.8 million, up from K1.8 million a year ago.
“The financial results we are presenting today underscore the resilience and adaptability of our operations amid challenging economic conditions,” said a spokesperson from NGIP Agmark. “The significant rise in cocoa prices, which hit a 47-year peak earlier this year, has substantially benefited our Cocoa Division and, by extension, our shareholders.”
While the cost of sales rose by 191%, driven by higher cocoa prices being paid to farmers, the company maintained a gross margin that remains competitive due to strategic price adjustments for cocoa growers. “We have increased the payments to our farmers while ensuring we can sustain our operations,” the spokesperson added.
Additionally, the firm announced an interim dividend of K0.04 per share, marking a 33% increase from the previous year’s figure of K0.03. This dividend represents a total distribution of K1,835,628, including taxes. “We are pleased to reward our shareholders for their support, even as we navigate the dynamic market conditions,” the spokesperson stated.
With direct payments to cocoa farmers across various regions increasing from K43 million in the first half of 2023 to K161 million in the same timeframe in 2024, the company expressed its commitment to bolstering local economies. “Our growth translates not just to better profits for us, but also to tangible benefits for the communities in which we operate,” the spokesperson remarked.
The company highlighted ongoing inflation pressures reflected in a 9% rise in overhead costs and a 59% increase in finance costs to support cocoa purchasing. However, there is optimism about the cocoa market’s future, with industry analysts projecting stable pricing for the next 12 to 18 months, contingent upon recovery efforts in West Africa, a major cocoa producing region impacted by adverse climatic conditions.
With the dividend ex-date set for September 20, record date September 25, and payment scheduled for October 15, NGIP Agmark assures shareholders of its commitment to creating value and fostering sustainable economic practices.