Greif Nigeria Plc records N260m loss in 2018, stops production indefinitely

Still enmeshed in economic turbulence, industrial packaging company, Greif Nigeria Plc, has announced that it recorded a loss of over N260 million in the 2018 financial year and the loss had continued in the 1st quarter of 2019.

Specifically, the company posted a net loss of N262.589 million in 2018 as against a net income of N49.424 million in the corresponding period of 2017.

Greif Nigeria Plc, a subsidiary of Greif International Holding B.V, Netherlands, manufactures and markets steel drums in Nigeria. Formerly known as Van Leer Containers (Nigeria) Plc, it changed its name to Greif Nigeria Plc in May 2004.

In a statement signed by David Onabajo, Managing Director, and Secretaries, Marina Nominees Limited, and published on the website of the Nigerian Stock Exchange (NSE), the company noted that efforts made to win back its key customers and also get price increases from the customers have not been encouraging. It had, therefore, resolved to stop receiving new orders from customers and also stop production for an indefinite period.

The full statement from the company: “Sequel to the Board Meeting of Greif Nigeria Plc. held on Wednesday, 27th March, 2019 at Greif Board Room, the Company wishes to inform the Nigerian Stock Exchange (“The Exchange”) and its shareholders/investing public of the following resolutions passed at the meeting:

1. a. That Mr. O. A. Obadina had retired from the services of the Company with effect from 31st October, 2018. Mr. Obadina would, however, remain on the Board of Directors of the Company as a non-Executive Director.

b.  That Mr. David Olufemi Onabajo be and is hereby appointed a Director on the Board and Managing Director of the Company with effect from 1st November, 2018 subject to ratification at the next Annual General Meeting of the Company.

2. That the Company recorded a loss of over N260 million in the 2018 financial year and the loss had continued in the 1st Quarter of the 2019 financial year, and that efforts made to win back the key customer of the Company and also get price increase from the customers were yet to yield positive result. It had, therefore, been resolved that the Company stop receiving new orders from customers and also stop production for an indefinite period.
3. (a)That the eighty-first Annual General Meeting of the Company for Tuesday, 18th June, 2019 at the Company’s Offices, 1 Alapata Road, Apapa, Lagos at 11.00 a.m.; (b) recommendation that the Register of Members and Transfer Books be closed from Monday, 20th May, 2019 to Wednesday, 22nd May, 2019 (both dates inclusive); (c) Laying the Audited Financial Statements for the year ended 31st October, 2018 before the Company in general meeting; (d) Recommendation that Mr. David Olufemi Onabajo be elected and Mr. Erik ’t Sas be re-elected Directors of the Company respectively; (e) Recommendation that Mr. G. A. Omotayo and Mr. Erik ’t Sas be appointed members of the Audit Committee, representing the Board; (f) Recommendation for the approval of the remuneration of the Directors; and (g) Recommendation that the Directors be authorized to fix the remuneration of the Auditors.”