Message from the MD

While plant production performance increased steadily during 2022 with September being the first month we achieved above 250kl average daily production, in December a step change was realized with average production increasing a further 20% to slightly above 300kl per day. This level of performance was outstanding and fitting realization of the key drivers of volume, quality and efficiency.

As luck would have it this dramatic increase in production coincided with a decline in demand from our traditional markets, the lag in supply negotiations and deep-sea logistics has required us to operate at below this maximum realized capacity during H1 of 2023. Various initiatives to develop new markets are nearing completion and we expect to again be able to ramp up to run at high rates for the second half of the year.

This reduction in short-term demand has highlighted that the key driver of volume cannot outweigh the efficiency and quality drivers which remain critical irrespective of the volume produced, focus now is on producing a specific daily production target at optimum efficiency. The mindset that continual optimization is not purely measured in volume produced but also through maximizing efficiency applies not only to production, but all aspect of the business.

This requires us to consider everything that we do and how it can be done simpler and more efficiently. “The way it’s always been done” is the red flag we must question and challenge, is this the most efficient and effective way? There are multiple areas and activities where improvements can be made, where we can reduce the inherent friction that exists and which requires excess effort to get something done.

There are numerous examples in the world around us where all the available energy is used talking about a problem leaving very little for doing anything about it. Determining which activities which could be improved and made simpler is not necessary the hard part, identifying the changes required and implemented them thoroughly is where effort and commitment will be required by all of us.

CHEERIO MARK!

Mark Norton-Amor, the financial executive of AlcoNCP, has retired after 25 years of dedicated service to the company. Reflecting on his retirement, Mark expressed a sense of calmness and fulfillment, having reached the end point of his career. He acknowledged that it's the people he will miss the most, as accountants merely record what happens while the true driving force behind a business lies with the operations, supply chain, and sales teams. Mark witnessed significant events during his tenure, including the Alco Group’s acquisition of NCP Alcohols and the expansion of production capacity.

One crucial project that made a lasting impact on AlcoNCP was the conversion to maize and the adoption of energy-efficient technology, solidifying its position as the largest and most advanced plant in Africa. Mark emphasized the importance of thoughtful decision-making and seeking guidance from experienced mentors. He also recognised the value of building long-standing relationships with customers, suppliers, and colleagues.

In his retirement, Mark plans to join his wife in Scotland and embark on a new chapter AlcoNCP, he views it as a "cheerio" rather than a final goodbye, anticipating future encounters with colleagues and returning to South Africa annually.

Mark expressed his well wishes for the company's continued success and looks forward to witnessing the future results of ongoing projects and value-added endeavors.