Nigerian Aviation Handling Company Plc recorded an upswing in earnings in the second quarter, closing the half-year trading with an after-tax profit of N968 million – already atop last year’s closing profit of about N772 million.
Roughly N690 million or over 71 per cent of the half-year profit was earned in the second quarter – during which profit more than doubled at 105.7 per cent quarter-on-quarter.
The aviation services company is experiencing another outstanding profit growth this year after lifting profit by a clear 115 per cent in 2021.
Strong revenue growth with slowing costs has been the benign combination underlying the company’s impressive profit advance since last year. Turnover had grown by 43.5 per cent to N10.2 billion at the end of 2021.
Revenue growth stepped up to 45.8 per cent quarter-on-quarter in the second quarter to N3.6 billion. Input cost moderated at an increase of 36.4 per cent over the same period to N2 billion. The resulting cost saving jerked up gross profit by almost 60 per cent quarter-on-quarter to N1.6 billion in the second quarter.
Further cost saving was made from administrative expenses, which also grew at a moderated rate of 33.6 per cent quarter-on-quarter to N890 million. That again added speed to operating profit, which rose by 67.6 per cent quarter-on-quarter to N852 million in the second quarter.
The third level of cost saving was extracted from finance expenses which went down by 46 per cent quarter-on-quarter to N47.7 million in the second quarter. This was reinforced by a jump of more than three and half times in interest income in the quarter to N28 million.
The company gained yet further momentum in pre-tax profit, which grew by 94.6 per cent quarter-on-quarter to N832.5 million.
With a stronger growth in the second quarter than in the first, the company’s half-year earnings performance has seen a major boost. Turnover amounted to N6.5 billion at the end of the half-year operations in June 2022, an increase of 37.4 per cent year-on-year.
Cost of sales moderated at an increase of 29.4 per cent over the same period to N3.8 billion. The cost saving here registered positively in building gross profit at 51 per cent to N2.6 billion at the half year.
Administrative costs remained moderated at a year-on-year increase of 21 per cent to N1.5 billion and despite a decline in other income, the company raised operating profit by 77.4 per cent to N1.3 billion at the end of half-year operations.
Interest income recorded four times jump to N66 million during the review period while interest expenses closed flat at N94.6 million, leading to a drop of 63.3 per cent in net interest expenses to N28 billion.
The company closed the half-year operations with a top record growth of 94.3 per cent in pre-tax profit year-on-year to N1.25 billion, already ahead of the closing figure for last year. It had grown pre-tax profit by 155 per cent to N924 million in the 2021 full year.
At N968 million at the end of June 2022, after-tax profit rose by 91.8 per cent year-on-year. The company earned 59 kobo per share at the end of half-year operations, improving from 30 kobo per share in the same period last year.
It closed last year with earnings per share of 46 kobo and paid a cash dividend of 41 kobo per share plus a scrip dividend of one for five.
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