UPDC Plc has reported a 278 per cent growth in profit after tax, rising to N836.91m for the financial year ended December 31, 2024, from N221.51m recorded in the previous year.
According to the company’s consolidated and separate financial statements filed with the Nigerian Exchange Limited recently, the growth was driven by an increase in revenue, which rose by 121 per cent from N5.34bn in 2023 to N11.79bn in 2024.
The gross profit also rose to N3.40bn in 2024, from N1.90bn in the prior year, representing a 79 per cent growth. This was achieved despite a rise in cost of sales to N8.39bn from N3.44bn in 2023.
Administrative expenses grew to N1.97bn in 2024 from N1.64bn in 2023, while selling and distribution expenses increased significantly to N550.07m from N111.24m.
Other operating income declined by 13 per cent to N434.07m from N501.06m, while credit loss expenses also rose to N163.60m from N84.92m in 2023. The company recorded no losses from its joint venture during the year, compared to the N5.51m loss recorded in the previous year.
Operating profit more than doubled to N1.15bn in 2024, up from N563.60m in 2023. Finance income also increased to N559.97m, from N239.53m, while finance cost declined slightly to N397.83m from N423.19m. Consequently, net finance income stood at N162.14m, compared to a net finance cost of N183.66m the previous year.
Profit before taxation surged by 244 per cent to N1.31bn in 2024 from N379.94m in 2023. However, the tax expense also increased significantly to N472.01m from N158.43m, resulting in a net profit of N836.91m, compared to N221.51m in 2023.
Despite the rise in profit, UPDC recorded a fair value loss of N186.78m on financial assets, reversing a gain of N453.61m posted in 2023. As a result, total comprehensive income for the year stood at N650.13m, compared to N675.11m in the previous year.
Profit attributable to equity holders of the parent stood at N432.19m, while non-controlling interest accounted for N404.72m of the profit.
Following the improved financial performance, the Board of Directors approved a dividend of 1 kobo per ordinary share, amounting to a total payout of N185.60m, based on 18.56 billion outstanding shares. No dividend was declared in 2023.
The company also reported a rise in its total assets, which grew by 58 per cent to N30.99bn in 2024, from N19.66bn in the previous year. This was driven by a sharp increase in inventories to N8.73bn from N3.20bn, and cash balance, which more than doubled to N11.50bn from N4.92bn.
Total equity rose to N9.49bn from N8.84bn, while total liabilities increased to N21.50bn from N10.83bn in 2023, reflecting increased trade and other payables, which surged to N17.79bn from N5.82bn.