Business

NAHCO’s full-year profit leaps by 431%

Published

4 years ago

February 1, 2020

West African ground handling service provider, Nigerian Aviation Handling Company (NAHCO) has posted a 431% increase in its after-tax profit for the the year ended 31^st December 2019 compared to the corresponding period of 2018.

This and other details are contained in the cargo and logistic company’s Unaudited Financial Statements for the Year Ended Dec. 2019, posted on the website of the Nigeria Stock Exchange (NSE) on Thursday.

Revenue grew by 3.3%, climbing up from N9.825 billion at FY2018 to N10.149 billion in the corresponding period of last year.

Profit Before Tax (PBT), more than doubled, advancing from N503.237 million at FY2018 to N1.341 billion at FY2019, a 166.6% growth as a matter of fact.

Profit After Tax (PAT) grew by 431%, up from N196.794 million at FY2018 to N1.045 billion at FY2019.

Earnings Per Share (EPS) surged by 433.3% from N0.12 at FY2018 to N0.64 at FY2019.

Expansion in the size of profit in the period under review derived from NAHCO’s ability to bolster its operational efficiency by cutting down the cost of doing business significantly.

For instance, Operating Costs went down moderately from N6.656 billion at FY2018, when NAHCO ironically did less business, to N6.544 billion, when it did more business, translating to 1.7% decrease.

Even though the firm also reduced its Finance Costs significantly, the game-changer was the drop in its Selling and Administrative Expenses, which tumbled by 13.6% from N2.930 billion at FY2018 to N2.532 billion at FY2019.

NAHCO had last July revealed plans to commit N3.6 billion to the procurement of machinery to bolster its operations, specifically its processing area, ultramodern warehouse and enhancement of its relationship management and service delivery.

Founded in 1979 and currently with operations in major Nigerian airports, NAHCO has expanded its business offering to incorporate energy, logistics and development of a free trade zone.

With 1,624,218,750 outstanding shares, its market capitalisation currently stands at over N4.320 billion.

NAHCO has maintained a consistent dividend-paying policy since 2006 with a dividend yield currently at 9.40%.

Shareholders should be in for a good financial reward anytime soon in light of the foregoing coupled with the improved financials.

NAHCO currently trades on the floor of the NSE at N2.95 per share.

Earnings Per Share is the profit that each unit of a company’s ordinary shares  yields  during a particular period. It is simply calculated by dividing the Profit After Tax by the company’s total outstanding shares.  Increase in a company’s EPS often reflects an improvement in its bottom-line while a fall, on the other hand, indicates a declining profit.

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