Executive Summary
R.T. Briscoe Nigeria Plc sustained its turnaround trajectory in the nine months ended September 30, 2025, supported by strong revenue growth, improved sales momentum in the automotive and engineering segments, and cost optimization efforts. The Group delivered a solid topline expansion of 67% YoY to ₦27.15bn, driven by higher vehicle sales, after-sales services, and increased demand in its engineering and property businesses. Operating profit improved to ₦2.13bn from ₦1.87bn in 9M 2024, reflecting better operating leverage and enhanced gross margin performance. Profit Before Tax, however, contracted by 13.8% YoY to ₦726.9m due to higher finance costs stemming from elevated interest rates and increased short-term borrowings. Despite the higher funding burden, Briscoe posted a net profit of ₦591.1m, compared to ₦761.9m in the prior year — still demonstrating a sustained positive earnings trend. The Group successfully improved shareholder value with retained losses narrowing from ₦12.65bn to ₦12.06bn, strengthening its gradual balance sheet recovery.
Financial Highlights – Statement of Profit or Loss
₦’000 9M 2025 9M 2024
Revenue 27,152,014 16,276,824
Cost of Sales (21,263,916) (12,200,911)
Gross Profit 5,888,098 4,075,913
Other Income 56,401 710,869
Selling & Distribution Expenses (1,414,702) (966,232)
Administrative Expenses (2,397,071) (1,952,773)
Operating Profit 2,132,726 1,867,777
Finance Costs (1,405,819) (1,024,523)
Profit Before Tax 726,907 843,254
Income Tax (135,760) (81,384)
Profit After Tax 591,147 761,871
Earnings Per Share (Kobo) 50.25 65.00
Revenue Performance
- Topline growth +67% YoY driven by strong performance across automotive and engineering segments.
- Gross profit margin improved modestly as higher sales volume offset inflationary and FX-driven input cost pressures.
- Lower other income YoY due to reduced one-off gains and reduced fair value revaluation income.
Profitability and Margins
- Operating profit improved +14% YoY as stronger sales supported better cost absorption.
- Finance costs increased +37% YoY, reflecting:
- higher interest rates,
- increased reliance on overdrafts and short-term funding.
- Bottom line impacted by funding costs but remains positive, marking third consecutive profitable period — a milestone in the Group’s restructuring program.
Balance Sheet Overview
₦’000 Sep 2025 Dec 2024 % Δ
Total Assets 15,562,924 12,661,104 +23%
Current Assets 9,599,500 6,715,926 +43%
Inventory 1,930,866 1,603,687 +20%
Trade Receivables 6,253,911 3,793,852 +65%
Borrowings & Bank Overdraft 16,905,802 13,689,384 +24%
Retained Earnings (12,059,675) (12,650,822) Losses Reduced
Total Equity (7,887,272) (8,478,419) Improved
Interpretation
- Strong working capital expansion driven by higher trade receivables and inventory levels as sales volumes increased.
- Net liabilities remain significant, but equity deficit narrowed by ₦591m on retained earnings improvement.
- High gearing persists; deleveraging and refinancing remain strategic priorities.
Key Ratios & Indicators
Metric 9M 2025
Revenue Growth +67%
Operating Margin 7.86%
PBT Growth -14%
PAT Growth –22%
Inventory Growth +20%
Strategic Insights
- Sustained demand recovery in automotive and engineering services.
- Increased operational discipline driving cost containment.
- Strategic inventory build and working capital expansion to support higher business activity.
- Continued turnaround execution — balance sheet cleanup and restructuring remain ongoing.
Strengths
- Strong revenue rebound and consistent profitability
- Improved operating leverage and gross margins
- Turnaround trajectory intact with shrinking accumulated losses
Weaknesses
- High finance cost burden and elevated leverage position
- Weak equity base still in negative territory
- Working capital pressure driven by rising receivables
Outlook
Briscoe remains positioned to deliver sustained earnings recovery, supported by improved trading conditions, growing auto demand, and engineering project opportunities. Management focus will remain on:
- debt restructuring & capital strengthening,
- working capital efficiency,
- disciplined margin management,
- expanding after-sales and service-linked recurring revenues.
Continued FX stabilisation and easing monetary conditions would further improve bottom-line performance over the next 12 months.
Analyst View
“R.T. Briscoe continues to demonstrate a credible turnaround path with strong sales growth and improving earnings quality. However, high leverage and working-capital pressure remain key risks. Effective refinancing and balance sheet repair will be critical to sustain profitability and unlock long-term value.”
Conclusion
R.T Briscoe delivered a strong revenue-led performance in 9M 2025, reinforcing its restructuring success and return to sustainable profitability. While funding constraints and negative equity persist, the Group’s ongoing operational progress, cost discipline, and improved market traction provide a solid platform for continued recovery and shareholder value restoration.
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Disclaimer
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