NGX Group reports 40.6% decline in profit before tax to N726m

NGX group has announced a 40.6 per cent drop in profit before income tax to N726 million in half year (H1) ended 30, June 2023 from N1,223.2 million in the corresponding period in 2022 due to a reduction in the top line Year-on-Year (YoY).

The group also announced a 45.9 per cent decline in profit after tax to N444.1 million in H1 2023 from N820.2 million reported in H1 2022, resulting in a decline in profit after-tax margin to 12.03per cent from 19.45 per cent recorded in H1 2022.

The group declared gross earnings’ decline of 12.5 per cent to N3.70 billion from N4.22 billion as of June 2022, while other income increased by 24.9 per cent to N490 million from N393 million in the same period.

Total expenses grew marginally by 0.4per cent from N2.60 billion in H1 2022 to N2.61 billion in H1 2023 primarily driven by a 3.7 per cent growth in operating expenses (39.3 per cent of total expenses) to N1.02 billion from N991.2 million in H1 2022.

This was moderated because of a decrease in the finance cost (46 per cent of total expenses) of N1.21 billion related to a term loan facility. Personnel expenses (53.9 per cent of total expenses) also grew by 4.1 per cent from N1.35 billion in June 2022 to N1.41 billion during the period under review.

The 33.3 per cent decline in Operating profit of N1,076 million in H1 2023 from N1,613.1 million in H1 2022, is as a result of the 16.3 per cent decline in revenue YoY.

The group declared a 3.7 per cent drop in total assets to N54.94 billion from N57.06 billion in December 2022, driven primarily by a 33.1 per cent decline in trade and other receivables to N712.86 million from N1,065 million in December 2022, and moderated by a 5.31 per cent growth in cash equivalent to N5 billion from N4.75 billion in December 2022.

Total liabilities saw a 12.3 per cent reduction, falling from N20.3 billion in December 2022 to N17.8 billion. This decrease was primarily due to the repayment of a term loan that was used to finance investments in selected associates.

Commenting, the Group Managing Director/Chief Executive Officer, NGX group, Mr. Oscar Onyema in a statement said: “While our half-year financial results for 2023 may reflect the impact of economic headwinds, NGX Group demonstrated resilience by recording a profit before tax of N0.7 billion. We are optimistic that with market friendly pronouncements already made by the new government, trading and listing activities will continue the positive impact experienced in June 2023.

“Consistent with our strategic objective to maximise shareholder value, the Board of Directors has consented to an interim dividend of N0.25 Kobo per ordinary share of 50 Kobo. This translates to a total payout of N495,532,893

“This initiative underscores better flow through of dividend from an associate company and first-time dividend payment from our flagship subsidiary. It also emphasizes our continued commitment to working collaboratively with our shareholders and other stakeholders in creating and distributing value, even in challenging market conditions.”