Company insists operations remain strong
Zichis Agro-Allied Industries Plc has said its equity fundamentals remain strong and steadily growing.
The company made the statement despite recent volatility in its share price on the Nigerian Exchange.
Executive Director, Finance and Strategies, Chris Ogbaisi, explained that the company continues to expand production and strengthen its agricultural base.
He said recent market pressure reflects short-term trading activity rather than weak fundamentals.
Feed mill expansion boosts revenue outlook
Ogbaisi disclosed that Zichis has upgraded its animal feed mill to a five-tonne-per-hour capacity.
He said the facility has already begun operations.
According to him, the upgrade will significantly boost revenue generation for the company.
The company projects more than N540m in monthly turnover from the feed segment.
Ogbaisi added that the expansion aligns with Zichis’ long-term value creation plan.
He said the goal is to improve shareholder returns and strengthen brand performance.
Production targets point to higher output
The Executive Director gave a detailed breakdown of the production outlook.
He explained that the facility can produce five tonnes per hour.
With 12 operating cycles across 20 working days, output is expected to reach about 1,200 tonnes monthly.
This translates to roughly 40,000 bags of animal feed each month.
Each bag sells for about N13,500.
At full capacity, Ogbaisi said monthly turnover could exceed N540m.
Farm expansion supports raw material supply
Zichis has also started clearing a 2,000-acre farm estate.
The company said the move will strengthen its agricultural supply base.
It also aims to take advantage of the ongoing planting season.
Ogbaisi noted that the expansion will support the company’s animal feed operations.
He added that all major divisions are now fully active, creating additional revenue streams.
Market decline linked to profit-taking
Zichis shares recently recorded a six-session losing streak on the Nigerian Exchange.
However, Ogbaisi attributed the decline to profit-taking by investors.
He also pointed to social media speculation affecting sentiment.
According to him, the company’s real performance does not reflect the recent price drop.
Despite the volatility, the stock gained 10 percent on Tuesday, closing at N29.13.
Insider holding and investor caution
Ogbaisi confirmed that Managing Director Anthonia Akabusi still holds over 50 percent stake in the company.
He clarified that a recent share sale complied with regulatory disclosure rules.
He also urged investors to be cautious of what he described as coordinated misinformation online.
Ogbaisi maintained that the company remains focused on long-term value creation.
Analysts see selective buying interest
Market analyst Abiodun Ogunniyi of GTI said Zichis may attract bargain hunters.
He also mentioned Aradel and The Initiates Plc as other potential picks.
Ogunniyi said market sentiment remains cautiously positive despite recent profit-taking.
He expects selective investor interest to return to the stock in the short term.
Outlook tied to execution
The company’s projections now hinge on execution of its expansion plans.
If achieved, the N540m monthly revenue target would significantly boost earnings.
However, investors will watch closely for audited results to confirm the projections.
Zichis said it remains confident in its growth path and long-term outlook.
