Ardova Plc is N850.21m richer in profit (after tax) in Q1 2021. This amounts to 70.91% increase from N497.45m in Q1 2020. The group’s pretax profit rose by 108.1% to N1.21bn in Q1 2021 from N580.30m in Q1 2020.
This was scooped from the group’s unaudited financial statements for the mentioned period which also showed that there was a decline in revenue to N41.65bn from N52.05bn same period last year. There was equally an increment in shareholder funds by 4.7% to N19.1bn from N18.2bn at the end of December 2020, while its total assets fell to N62.3bn from N62.4bn.
Reacting to the statement, Olumide Adeosun, Ardova’s CEo, said, “We had a good start in the first quarter of 2021 despite the PMS supply challenges that impacted product volumes and topline revenue across the downstream sector.
“AP delivered significant improvement in margins and continued its steady track towards core asset optimization and improved operational efficiency. Our resolve to build a resilient and agile enterprise was evident in the sterling growth of 108% in profit before tax achieved by the firm.”
He continued, “Consequently, margins came in higher at 7.7 per cent from 5.4 per cent in the corresponding period, while operating expense declined by 24.3 per cent amidst a high inflationary pressured environment. Our operational efficiency ratio further improved to 4.7 per cent from 5.0 per cent reported in Q1 2020.
“Working capital position remained healthy with a debt coverage of 21.1 per cent at the company and 37.6 per cent at the group. The improved capital position further reflects the strength of our balance sheet as we drive our growth aspirations with investments made in clean energy solutions.”
He maintained, “We will continue to focus on our strategic priorities and commit firmly to delivering superior customer experience across all service touchpoints.
“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.”
Commenting on Axles and Cartage, Ardova’s haulage and transportation business, Adeosun said the company realized a very positive figure posting 43$ in Q1 2021.
He said the group’s haulage and transportation business, Axles and Cartage, also achieved a positive gross margin of 43 per cent within Q1 2021, reflecting its drive to build a viable and well-diversified business.
Azuka Edokobi is a Writer and Entrepreneur