The Managing Director of Julius Berger Nigeria (JBN) Plc, Engineer Lars Richter, has declared that the Company is transiting into a conglomerate.
Richter made the declaration while speaking at the 2023 edition of the Julius Berger Group Investors Forum held recently via zoom with stakeholders and shareholders satisfied with the growth trajectory of the Company.
Providing participants at the forum with an update on Julius Berger’s business performance, strategy and operations in the 2023, as well as speaking to the outlook for the business of the Company, the Managing Director, confidently said: “The company is transiting to a conglomerate by continually driving growth across our core businesses and our subsidiaries, through which we deliver value-added services along the entire value chain of the construction industry.”
According him, “our core business, which is our first pillar, continues to achieve stable growth and upholds our standards as Nigeria’s leading and most innovative construction company. We continue to drive economic growth and expansion in the country through our infrastructure projects, as well as development of industries through our building arm.”
On the transnational expansion of the Company’s business operations, the Managing Director said that “we are expanding our value delivery to other regions of the continent, and we will continue to maintain our performance standards and drive innovation in the construction industry,” adding that, “the projects in our core business significantly contribute to economic growth and expansion, creating more efficient routes that drive trade and commerce and foster industry development.”
Speaking on the community engagement policy of the company, the Managing Director said: “We also maintain a robust Corporate Social Responsibility operation through various initiatives that focus on community welfare, employee development, diversity, and inclusion amongst other social initiatives. Some of our CSR initiatives include the provision of classroom buildings and school furniture as well as scholarships to students in construction-related departments across Nigeria’s universities. The MD added that, Julius Berger also has a food and medical donation policy during critical emergencies in the company’s operational sites and regions.
On the financial highlights of the Company within the period to provide additional information to participants at the Forum, Director of Finance, Christian Hausemann said due to management’s rigorous cost management, gross profit, operating profit, and pre-tax margins have improved compared to 2022, despite the local and global inflation environment.
He said, both of the Company’s assets and equity “have recorded very positive trends.”
Hausemann added that the Company invested in property, plant, and equipment to support its growth and diversification strategy. “The upward trend in return on equity continued and is recorded at an annualised rate of 15.8 per cent as of June, which demonstrates JBN’s ability to create value for its shareholders,” he said.
Saying “We are on the right track,” the Financial Director, further added that the Company’s return on assets which was negatively affected in 2020 rebounded positively from 2021 to 2023, reflecting a sustained upward trend in Julius Berger’s business activity.
At the questions and answers Answers session, both Richter, the Managing Director, and Hausemann, the Financial Director, cleared all doubts whatsoever coming from shareholders amidst pledges to deliver greater dividends by year ending and going forward.