Ardova Plc has reported a growth of 107 per cent in profit before tax (PBT) to N1.2 billion in the first quarter (Q1) ended March 31, 2021, up from N0.58 billion in the corresponding period of 2020.
The unaudited results indicated that the firm recorded revenue of N41.6 billion as against N52 billion in 2020. Operating expenses fell 24 per cent from N2.6 billion to N1.9 billion.
PBT printed at N1.2 billion, from N0.58 billion, while profit after tax (PAT) improved from N0.49 billion to N0.85 billion in 2021. Earnings per share jumped from 38 kobo to 65 kobo, thereby raising the hopes of higher dividend payout.
Commenting on the results, the Chief Executive Officer, Ardova Plc, Olumide Adeosun, said: “We had a good start in the Q1 of 2021 despite the premium motor spirit (PMS) supply challenges that impacted product volumes and top line revenue across the downstream sector. Ardova Plc delivered significant improvement in margins and continued its steady track towards core asset optimization and improved operational efficiency. Our resolve to build a resilient and agile enterprise was evident in the sterling growth of 108 per cent in PBT achieved by the firm. We delivered this performance through the efficient distribution of our white products across our value chain and a stronger focus on growing revenue from our non-fuel businesses.”
According to him, margins came in higher at 7.7 per cent from 5.4 per cent in the corresponding period, while operating expense declined by 24.3 per cent amidst a high inflationary pressured environment.
“Our operational efficiency ratio further improved to 4.7 per cent from 5.0 per cent reported in Q1 2020. Working capital position remained healthy with a debt coverage of 21.1 per cent at the company and 37.6 per cent at the group. The improved capital position further reflects the strength of our balance sheet as we drive our growth aspirations with investments made in clean energy solutions. The group’s haulage and transportation business, Axles and Cartage, also achieved a positive gross margin of 43 per cent within the first three months of the year, reflecting our drive to build a viable and well-diversified business. The performance of this business within a short cycle also serves as a pointer to the sustainable returns we intend to achieve once our liquified petroleum gas and renewable energy projects commence full operations,” Adeosun said.
He noted that they would continue to focus on their strategic priorities and commit firmly to delivering superior customer experience across all service touchpoints.
“ Looking ahead, we remain dedicated to sustaining this positive start through the year as we continue to work at delighting our customers and building shareholders’ confidence in our company,” he stated.