UPDC Plc Q3 Result – Resilient Earnings Growth Amid Strong Finance Income and Strategic Asset Management

Executive Summary

UPDC Plc delivered a strong performance for the nine months ended September 30, 2025, driven by higher revenue from property sales, finance income, and strategic operational initiatives. The Group’s diversified real estate portfolio and improved financing structure underpinned profitability despite rising administrative and selling costs.

Group revenue increased 93% YoY to ₦9.69 billion, reflecting improved property sales and recurring income streams, while the Company recorded a decline in revenue by 59% to ₦1.17 billion due to lower sales recognition. Operating profit for the Group rose 83% YoY to ₦1.11 billion, supported by higher revenue and efficient cost management, while the Company posted an operating loss of ₦124 million, reflecting subdued operational activity.

Net finance income surged to ₦1.34 billion for the Group from ₦19.8 million in 9M 2024, reflecting stronger investment returns and interest income from strategic financial assets. Profit Before Tax grew 291% YoY to ₦2.46 billion for the Group, while Company PBT fell marginally to a loss of ₦1 million. Profit After Tax rose 301% YoY to ₦1.63 billion for the Group, underpinned by improved revenue and net finance gains.

Total comprehensive income for the period for the Group increased significantly to ₦1.92 billion (+679% YoY), reflecting fair value gains on financial assets and strong operational performance.

Financial Highlights – Statement of Profit or Loss

₦’ million 9M 2025 9M 2024 % Δ

Revenue (Group) 9,688 5,025 +93%

Revenue (Company) 1,166 2,809 -59%

Operating Profit (Group) 1,114 608 +83%

Operating Profit (Company) (124) 175 (171%)

Net Finance Income (Group) 1,342 20 +6,667%

Net Finance Income (Company) 123 39 +219%

Profit Before Tax (Group) 2,455 628 +291%

Profit Before Tax (Company) (1) 213 (100%)

Profit After Tax (Group) 1,631 407 +301%

Profit After Tax (Company) (7) 141 (105%)

Total Comprehensive Income (Group) 1,925 247 +679%

Total Comprehensive Income (Company) 286 (19) N/A

Basic EPS (kobo) 9 5 +95%

Total Equity (Group) 11,225 9,486 +18%

Total Equity (Company) 1,485 1,385 +7%

Total Assets (Group) 33,723 30,988 +9%

Total Assets (Company) 10,878 10,533 +3%

Cash & Cash Equivalents (Group) 17,224 11,505 +50%

Cash & Cash Equivalents (Company) 2,785 4,238 -34%

Revenue Performance

• Group revenue grew 93% YoY due to higher property sales and improved rental/recurring income streams.
• Company revenue declined 59% YoY, reflecting lower property transaction volumes.
• Net finance income contributed significantly to Group profitability (+6,667% YoY), demonstrating strategic investment returns.
• Operating expenses increased moderately, with administrative and selling costs rising in line with revenue growth.

Profitability and Margins

• Group PBT margin expanded sharply to 25%, supported by finance income and operational efficiency.
• Company profitability was constrained by lower operational income and reduced sales activity.
• Tax expenses rose significantly for the Group due to higher PBT but remained manageable.

Balance Sheet Overview

₦’ million Group 30-Sep-25 Group 31-Dec-24 % Δ Company 30-Sep-25 Company 31-Dec-24 % Δ

Non-current assets 9,653 9,096 +6% 2,948 2,470 +19%

Current assets 24,071 21,892 +10% 7,930 8,063 -2%

Total assets 33,723 30,988 +9% 10,878 10,533 +3%

Total equity 11,225 9,486 +18% 1,485 1,385 +7%

Total liabilities 22,499 21,503 +5% 9,392 9,148 +3%

Cash & cash equivalents 17,224 11,505 +50% 2,785 4,238 -34%

Interpretation

• Total assets increased 9% YoY for the Group, reflecting improved cash holdings and inventory management.
• Equity grew 18% YoY, supported by higher retained earnings and total comprehensive income.
• Significant growth in cash balances (+50% YoY) strengthens liquidity and funding capacity for strategic projects.
• Company cash declined due to lower operating inflows and investment disbursements.

Key Ratios & Indicators

Metric Group 9M 2025

Revenue Growth +93%

PBT Growth +291%

PAT Growth +301%

EPS Growth +95%

Asset Growth +9%

Equity Growth +18%

ROE 15%

Net Profit Margin 17%

Strategic Insights

• Significant growth in finance income underscores strategic investment planning.
• Operational efficiency in real estate development enhances margin expansion.
• Strong cash position enables flexibility for upcoming projects and debt servicing.
• Fair value gains on financial assets contributed positively to total comprehensive income.

Strengths

• Strong growth in revenue and net finance income.
• Healthy cash position and improved liquidity.
• Equity growth and comprehensive income support financial stability.
• Strategic asset management and investment income diversification.

Weaknesses

• Company operations show revenue contraction and negative operating profit.
• Inventory levels remain high, requiring effective project execution.
• Dependence on real estate market dynamics may expose revenue to cyclical risk.

Outlook

UPDC Plc is well-positioned to sustain earnings momentum driven by strategic real estate projects, finance income growth, and disciplined operational management. The Group is expected to maintain strong cash reserves, invest in ongoing developments, and generate value for shareholders, while carefully managing company-level operational challenges.

Analyst View

“UPDC delivered robust 9M-2025 performance, with exceptional growth in finance income and improved revenue streams. Strong cash reserves, equity growth, and operational efficiency position the Group for sustained profitability, although Company operations require strategic focus to optimize project execution.”

Conclusion

The Group demonstrated resilience and strong financial performance in 9M-2025, balancing operational growth with strategic investments. With rising liquidity, equity, and finance income, UPDC Plc remains well-positioned for long-term growth in Nigeria’s real estate sector.