UPDC reports 509% profit growth

UPDC PLC has reported a 509 per cent increase in profit after tax for the year ended December 31, 2024.

The company posted a profit of N1.35bn, up from N221.51m in 2023.

According to the company’s financial statements for the period ended December 31, its revenue surged to N11.93bn, up from N5.34bn recorded in the previous year. This represents a 123 per cent increase in revenue, driven by sales performance and operational efficiency improvements.

The company’s cost of sales also grew, amounting to N7.65bn, compared to N3.44bn in the previous year.

However, despite the rise in costs, UPDC’s gross profit more than doubled, reaching N4.28bn in 2024, up from N1.90bn in 2023. This marks a 125 per cent growth in gross profit.

Selling and distribution expenses rose to N303.63m, up from N111.24m in the previous year, while administrative expenses increased to N2.51bn from N1.64bn in 2023. Despite these increases, the company’s operating profit grew significantly to N1.68bn, a 198 per cent rise from N563.60m in 2023.

UPDC’s finance income also saw a notable increase, reaching N538.18m in 2024, up from N239.53m in 2023, while finance costs decreased slightly to N397.83m, from N423.19m in the previous year.

Profit before taxation soared to N1.82bn, a 379 per cent increase from N379.94m in 2023. The company’s net profit for the year stood at N1.35bn, compared to N221.51m in 2023, reflecting a substantial 509 per cent growth.

Other comprehensive income for the year showed a decrease of 41 per cent, with a net change in the fair value of financial assets at N186.78m compared to a gain of N453.61m in the previous year.

The total comprehensive income for the year reached N1.16bn, a 72 per cent increase from N675.11m in 2023, with equity holders of the parent company benefiting from N730.47m of the total.

The company’s assets increased by 25 per cent to N24.63bn in 2024, up from N19.66bn in the previous year, with cash and cash equivalents rising to N11.47bn, compared to N4.92bn in 2023.

UPDC PLC’s equity grew by 13 per cent to N9.99bn, up from N8.84bn in 2023, while its liabilities also increased to N14.63bn, compared to N10.83bn in the previous year.

The PUNCH reported that UPDC Plc has reported a loss of N115.9m for the first half of 2024, an 11.59 per cent improvement from the N131.1m loss recorded in the corresponding period of 2023.