(Unaudited Financial Statements for the Year Ended 31st December 2024)
Key Financial Metrics
- Revenue: ₦12.61 billion (2024) vs. ₦7.15 billion (2023)
- Gross Profit: ₦2.63 billion (2024) vs. ₦1.64 billion (2023)
- Profit Before Tax: ₦634.77 million (2024) vs. Loss of ₦260.18 million (2023)
- Net Profit: ₦592.53 million (2024) vs. Loss of ₦379.03 million (2023)
- Earnings Per Share (EPS): 24.76 kobo (2024) vs. -15.84 kobo (2023)
ABC Transport Plc recorded an impressive 76% revenue growth, reflecting higher transport earnings, haulage services, and trading income. The company’s strategic expansion and improved operational efficiency contributed to a profit turnaround from a ₦379.03 million loss in 2023 to a ₦592.53 million net profit in 2024.
Operational Highlights & Cost Management
- Revenue Growth: Revenue increased by 76% YoY, driven by higher demand for transport services and an expansion in haulage and trading operations.
- Cost Control: Direct costs increased by 81% to ₦9.98 billion, mainly due to higher fuel costs, fleet maintenance, and operational expenses.
- Administrative Expenses: Increased to ₦1.66 billion from ₦1.27 billion, reflecting higher salaries, repairs, and general overheads.
While direct costs increased significantly, management successfully contained administrative expenses, ensuring that revenue growth outpaced expense increases, leading to profitability. This was achieved through strategic cost-reduction measures such as optimizing fleet maintenance schedules, renegotiating supplier contracts for better pricing, and implementing digital automation in key administrative processes to reduce inefficiencies. Additionally, the company improved staff productivity through targeted training programs and cost-efficient labor management, ensuring that operational expenses remained under control. These proactive measures helped mitigate inflationary pressures and allowed the company to reinvest more earnings into fleet expansion and route optimization, further strengthening its market position.
Capital Expenditures & Shareholder Returns
- Capital Investment: ₦2.83 billion spent on property, plant, and equipment, marking a significant increase from ₦1.09 billion in 2023.
- Borrowings: Increased to ₦3.98 billion from ₦2.23 billion, driven by new loans aimed at fleet expansion and modernization.
- Dividend: No dividend declared for 2024, as earnings were reinvested into business expansion.
ABC Transport Plc made substantial investments in fleet expansion and infrastructure, which are expected to drive future revenue growth while enhancing service efficiency. The company expanded its fleet with the acquisition of new high-capacity vehicles, allowing for increased passenger and freight transport capacity. Additionally, investments in maintenance facilities and spare parts storage have improved vehicle turnaround times and reduced downtime.
The company has also focused on upgrading its terminals and transport hubs to provide better customer experience and operational efficiency. New logistics centers have been established to support growing demand in haulage and e-commerce deliveries, further diversifying revenue streams.
Furthermore, ABC Transport Plc has invested in smart fleet management technologies, integrating GPS tracking and AI-driven route optimization to enhance scheduling accuracy, reduce fuel consumption, and improve overall service reliability. These advancements are expected to significantly enhance the company’s competitive advantage and profitability in the coming years.
Management Commentary
Key Takeaways:
- Strong revenue diversification efforts contributed to the impressive earnings growth.
- Fleet expansion and cost optimization improved operational efficiency.
- Challenges such as fuel price fluctuations and inflation remain critical factors affecting operational costs.
- Management remains optimistic about continued profitability and business growth.
Strategic Initiatives:
- Expansion into new transport routes to improve revenue streams.
- Investment in fleet modernization for enhanced customer experience and cost efficiency.
- Digital transformation initiatives to improve ticketing, route optimization, and fleet management.
- Cost-saving measures aimed at offsetting inflationary pressures and rising fuel costs.
Outlook for 2025
ABC Transport Plc remains optimistic about continued revenue growth in 2025, supported by:
- Further expansion into underserved transport routes.
- Adoption of technology-driven operational efficiencies.
- Enhanced fuel efficiency strategies to manage cost fluctuations.
- Potential improvement in earnings through cost control and service expansion.
With a clear focus on business growth and financial sustainability, the company is well-positioned for long-term profitability and regional market expansion.
Conclusion
ABC Transport Plc achieved a significant financial turnaround in 2024, shifting from a ₦379.03 million loss in 2023 to a ₦592.53 million profit. Despite challenges such as rising fuel costs and inflation, the company successfully diversified its revenue streams, optimized operations, and invested in fleet expansion. Looking ahead, continued investments in technology, infrastructure, and market expansion are expected to sustain strong growth momentum in 2025 and beyond.
