Hillcrest Industries Offers N5bn CP for Subscription – Comercio
Hillcrest Industries has opened N5 billion series three and four commercial paper (CP) for sale to investors in the local debt capital market, according to a statement from Comercio Partners Capital Limited.
The offer is expected to close on March 22 2024, Comercio told investors via email. Hillcrest is an agro-processor that owns and operates a state-of-the-art rice processing mill located in Offa, Kwara State, Nigeria.
“In line with its vision to assume a major role as a key player nationally and in the West African region, HillCrest commenced operations in July 2012 as a separate unit under Dayntee Farms Limited before transitioning into a stand-alone entity in 2013 recording exponential growth over the years.
“The Company’s commitment to continuous growth since 2012 is evident in the consistent investment in its operational processes geared towards the increase of HillCrest’s milling and processing capacity as it recently increased its milling capacity from 10mt/hr to 26mt/hr by installing a new automated rice milling factory set.
“This has driven up its milling capacity from 2,000 (50 kg) bags per day to 5,200 (50 kg) bags per day even as it seeks to further leverage on its improved milling capacity in 2023”.
The investment firm told investors that HillCrest is currently one of the largest producers of rice in Nigeria following the recent increase in its milling capacity to 187,200 MT p.a and plans to organically grow its milling capacity to 300,000 metric ton per annum by 2027.
With a significant and exceptional workforce of about 194 employees, HillCrest has reinforced its position as a top rice milling company in Nigeria with over 10 years operational management experience.
The company is also strategically positioned in the attractive food and agricultural sector supported by strong fundamentals with clear focus on scaling up in the Nigerian market.
Hillcrest holds a long-term rating of “BBB” and a short-term rating of “A2” by DataPro.
According to Comercio, this rating is supported by the company’s well-established market presence, diverse product portfolio with continuously increasing demand, stable earnings, and an efficient cash flow management system.
“HillCrest has continued to grow and expand its revenue principally from milling and production of rice. In absolute term, HillCrest’s Revenue grew by 233% from ₦4.81bn in 2019 to ₦19.57bn in 2023.
“Due to efficient use of resources and a significant reduction in HillCrest’s cost of sale by the management, the Company has sustainably increased its revenue thus resulting in an increase in operating profit from ₦255 million to ₦312 million in the past three years.
“In line with its vision and as part of its strategic business funding initiative, HillCrest is seeking to raise debt capital through this commercial paper to support the company’s short-term working capital requirement”, Comercio stated. #Hillcrest Industries Offers N5bn CP for Subscription – Comercio
