History
NIGERIAN Bag Manufacturing Company Plc (Bagco) was established in Lagos in 1972 to provide quality sacks to support the industrial and agricultural market sectors of the Nigerian economy. Arising from this base, Northern Bag Manufacturing Company Limited (Bagco North) was established in Kano during 1990 to further increase the capacity of sack production and improves distribution.
In 2007 Bagco was quoted on the floor of the Nigerian Stock Exchange becoming a Plc and it was during this first year as a publicly quoted company that Bagco was awarded the NSE President’s Award in its Trade Group.
Currently, the Bagco Group has a capacity of 30 million sacks per month which are used to package powder and granular Industrial products (Cement, Fertilizer, Flour, Sugar, Salt, Detergent, etc) and Open Market products (Shopping Bags, Agricultural products etc). Also, additional products such as webbing (Webby), sewing yarns, small cases (Trabag) and flexible intermediates bulk containers (Jumbo bags) have been added to the Bagco Group product portfolio.
Bagco Morpack (Nigeria) Limited (Morpack) was established in Lagos during 2007 to manufacture printed and laminated flexible films to provide packaging for the food, confectionary and detergent markets. Further expansion in Morpack throughout 2009 will add blown film to their range.

Management  
Nigerian Bag Manufacturing Company Plc has a 10 man board headed by Mr. G. Coumantaros. Dr. (Chief) Emmanuel A. Ukpabi (KJW) is the executive vice chairman; Mr. Peter S. Low is the managing director and Mr. Abiodun S. Ogunkoya as deputy managing director. Other directors are Mr. Lloyd T. Crisp, Mr. David E. Rainton, Mr. Alhaji Y. Olalekan Saliu, Alhaji Rabiu M. Gwarzo, OON, Professor Jerry Gana, CON and Engineer Muhammad M. Daggash.

Financing Structure
The authorized share capital of Nigerian Bag Manufacturing Company Plc in the year under review is 6.3 billion ordinary shares of 50 kobo each worth N3.150 billion, while it’s issued and fully paid up capital stood at 6.215 billion ordinary shares of 50 kobo valued at N3.108 billion.
The shareholders funds of the group was N8.926 billion in 2009, it went to N8.969 billion at the end of the immediate past financial year as the value appreciated by N42.585 million which was 0.5 per cent as just of the company stand at N9.766 billion in 2010 from N9.239 billion it recorded in 2009.
Fixed assets of the group rose by N322.9 million or 3.2 per cent from N10.025 billion in 2009, while the fixed assets of the company went down by N556.212 million or 7.8 per cent to stand at N7.170 billion in 2010 from N6.614 billion which it had at the end of its 2009 financial year. The current assets of the group went up from N9.944 billion in 2009 to N10.406 billion at the end of 2010 financial year. This is a N461.344 billion or 4.6 per cent rise in its current assets just as of the company rose by N1.716 billion or 17 per cent from N10.329 billion in 2009 to stand at N12.044 billion in the year under review. Total assets less current liabilities of the group drop by N1.761 billion or 12 per cent during the year under review from the value of N14.584 billion in 2009 it stand at N12.823 billion in 2010, while that of the company also dropped by N386.386 million or 3 per cent from N13.036 billion in 2009 to N6 billion in 2010 financial year.

Profitability
Nigerian Bag Manufacturing Company Plc group turnover for the 2010 financial year was N16.143 billion. This is a 10 per cent or N1.474 billion increase when compared to a turnover of N14.668 billion which it made in 2009, while that of the company rose by N103.551 million or 1 per cent from N10.294 billion in 2009 to stand at N10.397 billion in 2010. Cost of sales of the group dropped from N7.932 billion in 2009 to N7.230 billion in 2010. This is a decrease of N652.421 million or 8.2 per cent. The company had cost of sales of N12.444 billion in 2010 from N11.895 billion it made in 2009.
The group made N3.699 billion gross profit in the review period of 2010 as against N2.773 billion in 2009, which is N926.051million or 33 per cent increased. Bagco group spent N2.030 billion on administration expenses in 2010. This shows N64.661 million or 3.3 per cent increase when compared to N1.966 billion which it spent for the same purpose in 2009, while the company spent N1.444 billion in 2010 compare to N1.485 billion spent in 2009. The group profit before taxation went up by N604.396 million or 224 per cent during the review period from N269.551 million in 2009 to N873.947 million in 2010. the company also recorded growth of N868.178 million or 219 per cent from N396.711 million in 2009 to stand at N1.265 billion 2010. Profit after tax of the group was shoot-up by N219.147 million or 163 per cent in 2010 as against N134.188 million in 2009; it made N353.335 million in 2010. While that of the company rose from N270.882 million in 2009 to N837.111 million in the year under review.

Liquidity
The group current ratio in 2009 was 1.8:1. Current assets of the company can take care of 180 per cent of its current liabilities. In 2010, the situation was change. It was 1.3:1. Its current assets can also take care of 130 per cent of its current liabilities. The situation presented a decline if its inventory is taking out of the assets. In 2009, it came down to 0.48:1. Its current assets minus stock could take care of only 48 per cent of its liabilities. In 2010, it went up to 0.55:1. Its current assets minus stock could only take care of only 55 per cent of its liabilities.
While the company current ratio in 2009 was 2.3:1, current assets of the company can take care of 230 per cent of its current liabilities. In 2010, the situation was change. It was 2.0:1. Its current assets can take care of 200 per cent of its current liabilities. The situation presented a decline if its inventory is taking out of the assets. In 2009, it came down to 2.2:1. Its current assets minus stock could only take care of only 220 per cent of its liabilities. In 2010, it came down to 1.5:1. Its current assets minus stock could only take care of only 150 per cent of its liabilities.

Analysts Opinion
The company’s turnover rose by 1 per cent, while of the group rose by 10 per cent and its group gross profit to go up by 33 per cent. In 2010 cost of sales of the group shot down by 8.2 per cent. The earning per share of the company went up from N2.16 kobo it recorded in 2009 to stand at N5.69 kobo at the end of the year under review, while dividend per share during the review period went up by 160 per cent from N5 kobo recorded in 2009 to stand at N13 kobo in 2010.