Despite the Premium Motor Spirit (PMS) supply challenge that dogged the Nigerian economy, Ardova Plc has announced N858.68 million profit in the first three months (Q1) of 2021.
According to a filing of the company’s interim consolidated financial statements for the period ended 31 March 2021 which was obtained from the Nigerian Exchange Group (NGX) yesterday, the company’s revenue dropped to N41.6 billion as against N52.1 billion recorded in Q1 2020 while its operating expenses fell by 24.3 per cent from N2.6 billion in Q1 2020 to N1.9 billion in Q1 2021.
However, the company’s gross profit grew to N3.34 billion from N2.79 billion in 2020, profit before tax (PBT) rose by 108 per cent from N1.19 billion from N580.30 million while profit after tax (PAT) increased to N858.68 million from N497.45 million, representing a 70.9 per cent rise.
Commenting on the results, the Chief Executive Officer, Ardova Plc, Olumide Adeosun, said the company had a good start in Q1 2021 despite the PMS supply challenges that impacted product volumes and top-line revenue across the downstream sector.
Adeosun said AP delivered significant improvement in margins and continued its steady track towards core asset optimisation and improved operational efficiency, adding that the performance was due to its resolve to build a resilient and agile enterprise and efficient distribution of our white products across our value chain and a stronger focus on growing revenue from our non-fuel businesses.
“We will continue to focus on our strategic priorities and commit firmly to delivering superior customer experience across all service touch points.
Looking ahead, we remain dedicated to sustaining this positive start through the year as we continue to work at delighting our customers and building shareholders’ confidence in our company”, he said.
Further analysis of the results showed that the company’s margins came in higher at 7.7 per cent from 5.4 per cent in the corresponding period while operational efficiency ratio further improved to 4.7 per cent from 5 per cent reported in Q1 2020.
The Group’s haulage and transportation business, Axles and Cartage, also achieved a positive gross margin of 43 per cent within the first three months of the year, reflecting our drive to build a viable and well-diversified business.