ABC Transport Plc made a strong recovery in 2024, posting a pre-tax profit of N918.4 million, compared to a loss of N368.6 million in 2023, as revenue increased across all business segments.

The group’s gross profit rose to N2.87 billion, up 72.5% from N1.6 billion in the previous year, despite a 70.2% increase in costs.

This improvement was driven by a 70.7% surge in revenue, which reached N12.5 billion, strong enough to offset rising expenses and boost gross profit.

All business segments of ABC Transport recorded revenue growth in 2024, laying the foundation for bottom-line profitability.

However, a more in-depth look at the company’s business segments and their contributions to profitability is vital.

A closer look at ABC Transport’s business segments reveals that the cargo division led the charge in both revenue and profit.

Haulage was the next at N2.94 billion, double the N1.2 billion reported the previous year.

Not all segments, however, performed at the same level.

When looking at revenue sources more broadly, load and waybill activities emerged as the company’s top revenue generator.

While the growth in revenue laid a solid foundation for the group’s return to profitability, a key internal adjustment helped ensure those gains translated into bottom-line earnings, marking a shift from the challenges of the previous year.

In 2024, ABC Transport made a key adjustment to its other operating income, which played a significant role in supporting bottom-line profitability. The company recorded income of N462.5 million, reversing a loss of N57.16 million from the previous year.

Together, these income streams totaled N462.5 million, providing crucial support against a 26.4% rise in administrative expenses. This stands in contrast to the previous year, when such support was absent.

ABC Transport continued to face rising administrative expenses in 2024, reaching N2.2 billion, up 26.4% from the N1.7 billion reported in 2023, which itself is a 44.52% increase from the year before.

Breaking down the expenses, exchange losses made up the largest chunk at 26%, totaling N586.2 million.

Despite these growing costs, other operating income, which already stood at N462.5 million in 2024, helped absorb much of the impact.

As a result, ABC Transport recorded a healthy operating profit of N1.3 billion, a strong improvement over the N40.2 million reported in 2023.