Lagos, Nigeria – Julius Berger Nigeria Plc has reported a 32.38% increase in pre-tax profit for the full year 2024, reaching N29.5 billion, compared to N22.2 billion in the previous year. Despite the overall annual growth, the company faced a drop in Q4 pre-tax profit, which fell to N3.3 billion, down from N7.2 billion in Q4 2023.
The company’s total revenue for the year rose to N566.2 billion, reflecting a 26.91% year-on-year growth from N446.1 billion in 2023. The revenue boost was driven by strong performance in civil works, which contributed 55% of total revenue, amounting to N312.6 billion.
Financial Performance Overview
Julius Berger’s Q4 2024 revenue surged 42.99% to N161.2 billion, up from N112.7 billion in Q4 2023. However, cost of sales rose significantly by 32.77% to N495.8 billion, impacting gross profit, which saw a marginal increase of 3.21% to N70.3 billion.
Key financial indicators for FY 2024 include:
- Revenue: N566.2 billion (+26.91% YoY)
- Cost of sales: N495.8 billion (+32.77% YoY)
- Gross profit: N70.3 billion (+3.21% YoY)
- Administrative expenses: N75.7 billion (+33.80% YoY)
- Other gains: N32 billion (+103.77% YoY)
- Operating profit: N12.6 billion (-33.30% YoY)
- Investment income: N20.2 billion (+181.05% YoY)
- Finance cost: N3.3 billion (-12.05% YoY)
- Pre-tax profit: N29.5 billion (+32.38% YoY)
- Post-tax profit: N14.9 billion (+17.55% YoY)
- Total assets: N1.01 trillion (+49.40% YoY)
Revenue Breakdown
Julius Berger’s business segments performed as follows:
- Civil works: N312.6 billion (55% of total revenue)
- Building works: N130.9 billion (23%)
- Services and diversification: 21.0% and 0.6%, respectively
Rising Costs and Profitability Challenges
While revenue showed strong growth, rising expenses impacted profitability. The cost of sales jumped 32.77% to N495.8 billion, while administrative expenses surged 33.80% to N75.7 billion, up from N56.3 billion the previous year.
Operating profit declined by 33.30% to N12.6 billion, compared to N18.9 billion in 2023. However, investment income soared 181.05% to N20.2 billion, driven by interest income.
Asset Growth and Financial Strength
Julius Berger’s total assets expanded significantly to N1.01 trillion, marking a 49.40% increase from N678.2 billion in 2023.
- Non-current assets: Grew from N293.4 billion to N467 billion, with property, plant, and equipment making up N279.5 billion.
- Current assets: Increased to N544.9 billion, up from N383.5 billion, driven by higher cash balances, trade receivables, and inventories.
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