(Unaudited Financial Statements for the Year Ended 31st December 2024)
Key Financial Metrics
- Revenue: ₦313.62 billion (2024) vs. ₦183.28 billion (2023)
- Cost of Sales: ₦273.95 billion (2024) vs. ₦166.42 billion (2023)
- Gross Profit: ₦39.67 billion (2024) vs. ₦16.86 billion (2023)
- Operating Profit: ₦30.16 billion (2024) vs. ₦7.79 billion (2023)
- Profit Before Tax: ₦4.86 billion (2024) vs. – ₦11.97 billion (2023)
- Net Profit After Tax: ₦3.23 billion (2024) vs. – ₦9.43 billion (2023)
- Earnings Per Share (EPS): 2.48 kobo (2024) vs. – 7.23 kobo (2023)
Eterna Plc recorded a 71% increase in revenue, supported by strong fuel and lubricants sales. Improved operational efficiency and cost management enabled the company to transition from a ₦9.43 billion loss in 2023 to a ₦3.23 billion profit in 2024.
Operational Highlights & Cost Management
- Selling & Distribution Expenses: ₦327.16 million (2024) vs. ₦404.33 million (2023)
- General & Administrative Expenses: ₦9.29 billion (2024) vs. ₦8.73 billion (2023)
- Finance Costs: ₦6.30 billion (2024) vs. ₦1.51 billion (2023)
- Impairment on Credit Loss: ₦2.26 billion (2024) vs. reversal of ₦108.99 million (2023)
- Foreign Exchange Loss: ₦16.74 billion (2024) vs. ₦18.40 billion (2023)
Despite increased finance costs and credit impairment expenses, stringent cost control measures helped mitigate overall rising expenses, leading to a notable improvement in profitability. The company has also undertaken a comprehensive review of its supply chain strategy to further optimize procurement and operational expenses.
Additionally, Eterna Plc has implemented advanced cost-monitoring systems that allow real-time tracking of expenditures, enabling proactive financial adjustments. This approach has led to enhanced forecasting accuracy and improved financial planning, ensuring that the company can react quickly to market fluctuations. The firm has also negotiated more favorable supplier contracts, reducing raw material costs while maintaining product quality.
Furthermore, digital transformation efforts, such as automated inventory management and predictive analytics, have improved supply chain efficiency. These initiatives have enhanced procurement decision-making, reduced wastage, and streamlined logistics operations, allowing Eterna Plc to maintain cost advantages in a highly competitive market.
Capital Expenditures & Shareholder Returns
- Total Assets: ₦69.09 billion (2024) vs. ₦59.64 billion (2023)
- Total Liabilities: ₦62.36 billion (2024) vs. ₦56.14 billion (2023)
- Shareholder Equity: ₦6.73 billion (2024) vs. ₦3.50 billion (2023)
- Dividend Paid: No dividend declared for 2024
- Retained Earnings: ₦281.78 million (2024) vs. – ₦2.95 billion (2023)
Shareholder equity almost doubled, reflecting Eterna Plc’s strong financial turnaround and increased retained earnings after years of losses. The company is focused on reinvesting profits into high-growth areas such as renewable energy projects and infrastructure development, which are expected to provide long-term value for shareholders.
Management Commentary
Key Takeaways:
- Revenue growth was primarily driven by increased fuel and lubricants sales.
- Foreign exchange losses remain a challenge, but the company reduced exposure compared to 2023.
- Operational efficiency efforts led to a return to profitability.
- Expansion into new market segments, including industrial fuel distribution and renewable energy integration.
Strategic Initiatives:
- Expansion in distribution infrastructure to enhance market reach.
- Ongoing cost optimization to improve margins.
- Implementation of forex risk mitigation strategies to stabilize earnings.
- Investment in technology-driven logistics for better efficiency in fuel distribution.
- Diversification into alternative energy sources, aiming to become a key player in Nigeria’s energy transition.
Outlook for 2025
Eterna Plc remains optimistic about continued revenue growth in 2025, driven by:
- Further expansion in fuel and lubricants sales.
- Strategic investments in logistics and infrastructure.
- Ongoing efforts to optimize cost structures.
- Stronger forex risk management to minimize financial volatility.
- Accelerated growth in renewable energy investments.
- Market expansion into West African countries to drive regional competitiveness.
The company aims to further solidify its financial position by reinforcing operational efficiencies, maintaining strategic investments, and implementing market expansion initiatives. To achieve this, Eterna Plc is focusing on enhanced automation and digital transformation within its operations, improving supply chain logistics, and streamlining financial risk management. The company plans to leverage data-driven decision-making to identify high-yield investment opportunities while mitigating potential risks.
Additionally, Eterna Plc will continue expanding its footprint in West Africa, targeting new markets that align with its long-term growth objectives. The company is actively exploring strategic partnerships and mergers to drive scalability and ensure competitive advantage in an evolving market landscape.
Management is committed to enhancing shareholder value through sustainable investments and diversification strategies, particularly in renewable energy, eco-friendly fuel alternatives, and infrastructure development. By incorporating green initiatives and energy-efficient technologies, Eterna Plc aims to future-proof its operations while staying aligned with global environmental sustainability goals.
Conclusion
Eterna Plc achieved a strong financial recovery in 2024, successfully transitioning from a ₦9.43 billion loss in 2023 to a ₦3.23 billion profit. Despite ongoing foreign exchange challenges, cost management measures and revenue growth strategies positioned the company for sustained profitability and expansion in 2025. With a clear focus on renewable energy, regional expansion, and technology-driven efficiencies, Eterna Plc is poised for long-term sustainable growth.
