Nigeria: Oando Underlines Importance of Non Fuel Business

In its third quarter results, ended September, the company recorded a 22% increase in consolidated turnover, from $1,41-billion in September 2007, to $171-billion. The increase was attributable to increased business activities along the group’s supply chain, especially its supply and trading division, improvements in its supply chain management, on-time delivery across the business, stability in the business environment, and improved product availability during the third quarter.

Oando stated that the positive growth turnover, coupled with the strong improvement in margin efficiency, led to a 63% increase in gross profit.  Consolidated profit after taxation also increased by 66%, from $28,77-million to $47,9-million in the third quarter of 2008.

The company added that the results also brought into the fore the significant success of its nonfuel income line, as nonfuel revenue increased by 50% against the previous year. Oando also recently signed an agreement with a fast-moving consumer goods player, boosting its nonfuel revenue potential.

Oando stated that as the largest private importer of petroleum products into Nigeria, it expected to leverage on the market acceptability and niche that it had create, to deliver a strong performance before the year-end, and to guarantee its sustainable growth in the coming years.

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