MULTIVERSE Q3 Result – Profit Rebounds Sharply on Strong Operational Recovery and Cost Efficiency

Executive Summary

Multiverse Mining and Exploration Plc released its unaudited financial statements for the period ended 30 September 2025, reflecting a remarkable rebound in profitability and improved cost efficiency across its mining and quarrying operations. The Company reported a profit after tax of ₦666.68 million for the nine-month period, compared to ₦223.15 million in the corresponding period of 2024, representing a 199% year-on-year growth. This strong performance was driven by higher production output, increased demand for construction aggregates, and improved cost control measures. Revenue rose significantly to ₦978.29 million (9M 2025) from ₦574.61 million in 9M 2024, reflecting growing market traction and improved operational stability. Despite elevated energy costs and depreciation charges, gross profit surged by 87% year-on-year to ₦838.81 million, highlighting robust operating leverage and efficiency gains.  The balance sheet remained solid, with total assets standing at ₦4.29 billion and shareholders’ equity strengthening to ₦1.81 billion, up from ₦1.17 billion in December 2024. This improvement underscores the company’s strengthened financial position and sustainable growth trajectory.

Financial Highlights

₦’000 Q3 2025 (Jul–Sep) Q3 2024 (Jul–Sep) % Δ YoY 9M 2025 (Jan–Sep ) 9M 2024 (Jan–Sep) % Δ YoY

Revenue 499,012 194,220 +156.9% 978,285 574,610 +70.2%

Cost of Sales (38,954) (79,776) -51.2% (139,471) (125,371) +11.3%

Gross Profit 460,009 114,453 +301.7% 838,814 449,239 +86.7%

Administrative & Operating Expenses (30,156) (27,497) +9.7% (107,172) (99,138) +8.1%

Depreciation Charges (21,688) (21,425) +1.2% (64,965) (64,116) +1.3%

Operating Profit 408,245 65,530 +523.0% 666,677 285,985 +133.1%

Profit Before Tax 408,245 45,284 +801.9% 666,677 223,148 +198.8%

Profit After Tax 408,245 45,284 +801.9% 666,677 223,148 +198.8%

Basic Earnings Per Share (kobo) 0.95 0.11 +763.6% 1.56 0.52 +200.0%

Revenue and Operational Performance

Multiverse achieved strong revenue growth of 70% year-on-year in the first nine months of 2025, driven by increased mining activity, improved output from quarry operations, and sustained demand for granite aggregates and solid minerals. The gross profit margin expanded from 78.2% in 9M 2024 to 85.8% in 9M 2025, reflecting better pricing strategies, operational efficiency, and reduced direct costs per ton of output. The Company’s investment in plant maintenance and upgraded equipment has also contributed to enhanced production efficiency and reduced downtime. Administrative and operating expenses rose modestly by 8%, primarily due to inflationary pressures on wages and general overheads. However, these increases were well-contained relative to the revenue expansion, indicating effective cost discipline. Depreciation charges remained steady at ₦64.97 million (vs. ₦64.12 million in 2024), highlighting stable asset utilization and controlled capital expenditure during the review period.

Profitability Analysis

Multiverse delivered an impressive operating profit of ₦666.68 million for 9M 2025, representing a 133% increase year-on-year. This improvement was largely driven by stronger topline growth and reduced cost-to-revenue ratio. Despite recording finance costs of ₦62.84 million, the company maintained robust profitability, demonstrating strong operating cash flow generation and prudent leverage management.

Key Profitability Metrics:

• Gross Margin: 85.8% (vs. 78.2% in 2024)
• EBIT Margin: 68.2% (vs. 49.8% in 2024)
• Net Margin: 68.2% (vs. 38.8% in 2024)
• EPS: ₦0.016 per share, up 200% YoY

The consistent growth in margins underlines management’s ability to balance revenue expansion with disciplined cost management.

Statement of Financial Position

₦’000 Sep 2025 Dec 2024 % Δ

Exploration & Evaluation Assets 1,883,971 1,883,971 -

Quarry Exploration 2,127,548 2,189,514 -2.8%

Mine Properties 6,101 5,101 +19.6%

Property, Plant & Equipment 4,017,620 4,079,586 -1.5%

Total Non-Current Assets 4,017,620 4,079,586 -1.5%

Balance Sheet Analysis

• Total assets dipped marginally by 2.7%, primarily due to depreciation on mining assets and reduced cash holdings.
• Retained earnings surged by 103%, reflecting accumulated profits from improved operations.
• Interest-bearing loans declined significantly, indicating debt repayment and deleveraging.
• Mine rehabilitation provisions increased, reflecting prudent accounting for future environmental and reclamation obligations.
• Liquidity remained healthy, supported by improved profitability and a balanced capital structure.

Key Ratios

Ratio 9M 2025

9M 2024 Change

Gross Margin 85.8% 78.2% +7.6pp

EBIT Margin 68.2% 49.8% +18.4pp

Net Margin 68.2% 38.8% +29.4pp

Return on Assets (ROA) 15.6% 5.1% +10.5pp

Return on Equity (ROE) 36.9% 19.1% +17.8pp

Current Ratio 0.29x 0.28x +0.01x

Debt-to-Equity 1.48x 1.95x -0.47x

Strategic and Operational Insights

• Operational Efficiency: Upgraded equipment and stable production schedules have enhanced output quality and consistency.
• Revenue Diversification: The Company continues to explore opportunities in new mining concessions and aggregate distribution to reduce dependency on a single product line.
• Cost Management: Effective energy utilization and tighter procurement controls have driven gross margin expansion.
• Capital Structure Optimization: Reduced borrowing demonstrates prudent financial management and strengthens the balance sheet.
• Sustainability Commitment: Increased rehabilitation provisions signal a long-term focus on environmental stewardship and regulatory compliance.

Strengths

• Strong rebound in profitability and revenue growth.
• High gross margin due to efficient production processes.
• Significant debt reduction and improved capital structure.
• Sustained cost discipline and operational resilience.

Weaknesses

• Low current ratio signals tight working capital conditions.
• Exposure to commodity price volatility and energy cost fluctuations.
• Relatively high mine rehabilitation obligations impacting liquidity.

Outlook

The outlook for Q4 2025 and beyond remains positive as Multiverse is expected to sustain its growth momentum on the back of rising construction activity, increased demand for quarry materials, and stable commodity prices. Management’s focus on cost optimization, debt reduction, and expansion into new mining fields positions the Company for steady earnings growth in FY2026. Continued improvement in liquidity management and project diversification will be crucial to maintaining profitability and supporting future expansion plans.

Analyst View

“Multiverse Mining and Exploration Plc delivered an outstanding recovery in 2025, showcasing strong operational execution, margin expansion, and financial discipline. The impressive improvement in profitability and balance sheet health underscores management’s strategic focus and resilience in a challenging mining environment. Sustained focus on cash flow and expansion efficiency will be key to maintaining this upward trajectory.”

Conclusion

Multiverse Mining and Exploration Plc’s 9M 2025 results demonstrate a solid turnaround story characterized by strong topline growth, improved margins, and prudent financial management. With enhanced production efficiency, reduced debt burden, and a rising equity base, the Company is well-positioned to build on its momentum and deliver sustained value to shareholders. The strategic focus on operational efficiency, cost optimization, and environmental compliance sets a strong foundation for continued profitability and long-term industry leadership.