ABC Transport Plc posted a strong turnaround performance in the first half of 2025, reversing its prior year’s loss to deliver a profit before tax of ₦734.37 million, up from a loss of ₦56.24 million in H1 2024. This marks a significant recovery trajectory for the transport company, driven by rising revenue, improved operating efficiency, and non-core income growth. Despite lingering foreign exchange translation losses, the Group's net profit attributable to shareholders stood at ₦411.68 million compared to a loss of ₦97.05 million in the same period last year.
Key Strengths
- Revenue Surge
- Group revenue rose 52% YoY to ₦7.73 billion (H1 2024: ₦5.09 billion), driven by strong passenger and cargo transport demand.
- Gross Profit Growth
- Gross profit expanded to ₦1.81 billion (+55%) despite rising direct costs, reflecting improving operating leverage.
- Other Operating Income Support
- Non-core income rose by 70% to ₦254.89 million, providing a solid boost to EBIT.
- Reduction in Finance Costs
- Finance costs dropped by 18% YoY to ₦205.30 million, relieving some pressure on the bottom line.
- Return to Profitability
- Profit after tax stood at ₦465.49 million (vs. ₦191.46 million loss in H1 2024), indicating a strong earnings reversal.
Weaknesses & Risks
- High Administrative Expenses
- Operating expenses remain elevated at ₦1.19 billion (unchanged YoY), which may continue to limit margin growth.
- Volatility in Bottom Line
- While profit rebounded, the sharp swing from prior losses suggests earnings are still volatile and sensitive to macro factors.
- Low Earnings per Share (EPS)
- EPS remains modest at ₦0.0938 (or 9.38 kobo), highlighting that profitability is still in early recovery stages.
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