(Financial Statements for the Year Ended 31st December 2024)
Key Financial Metrics
- Revenue: ₦53.21 billion (2024) vs. ₦28.40 billion (2023) → 87% growth
- Gross Profit: ₦32.22 billion (2024) vs. ₦15.00 billion (2023)
- Profit Before Tax (PBT): ₦18.30 billion (2024) vs. ₦8.68 billion (2023) → 111% growth
- Profit After Tax (PAT): ₦12.87 billion (2024) vs. ₦5.54 billion (2023) → 132% growth
- Earnings Per Share (EPS): 660 kobo (2024) vs. 284 kobo (2023)
Nigerian Aviation Handling Company Plc recorded substantial revenue and profit growth in 2024, reflecting increased demand for aviation handling services, enhanced operational efficiencies, and robust cargo handling operations. The company’s ability to scale operations efficiently while maintaining high service standards played a crucial role in its financial success.
Strategic investment in modern handling equipment, automated logistics solutions, and workforce training programs contributed to improved operational efficiency and service delivery. Additionally, the company leveraged strong airline partnerships and expanded airport handling capacity, increasing its market presence across multiple locations.
Furthermore, the expansion of digital tracking systems and real-time data analytics enabled better resource allocation, minimizing downtime and maximizing throughput in passenger and cargo handling services. By focusing on cost-effective solutions and infrastructure upgrades, the company successfully optimized revenue streams and strengthened profit margins, setting a solid foundation for sustained growth in the coming years.
Guidance
- Revenue nearly doubled due to higher passenger and cargo traffic.
- Expanded gross profit margins as efficiency improvements drove profitability.
- Tax expenses rose to ₦5.43 billion, reflecting higher earnings.
- A total dividend of ₦4.95 billion was paid to shareholders, reinforcing strong financial health.
Operational Highlights & Cost Management
- Operating Costs: ₦20.99 billion (2024) vs. ₦13.40 billion (2023)
- Administrative Expenses: ₦11.31 billion (2024) vs. ₦6.10 billion (2023)
- Finance Costs: ₦1.18 billion (2024) vs. ₦202 million (2023)
The company saw an increase in operating and administrative expenses, primarily driven by workforce expansion, inflationary pressures, and higher infrastructure costs. However, cost optimization strategies helped mitigate expense growth, ensuring continued profitability improvements.
Revenue Breakdown
- Passenger & Aircraft Handling: ₦38.23 billion (2024) vs. ₦17.86 billion (2023)
- Cargo Handling (Import & Export): ₦9.04 billion (2024) vs. ₦7.18 billion (2023)
- Equipment Rental & Maintenance: ₦3.04 billion (2024) vs. ₦1.72 billion (2023)
Passenger and aircraft handling remained the primary revenue driver, benefiting from increased air travel demand, new airline partnerships, and expanded operational capacity. The surge in air passenger traffic, coupled with rising international airline operations in Nigeria, led to a substantial increase in ground handling service requirements. Additionally, the company strengthened its strategic relationships with both domestic and international airlines, ensuring a steady and growing revenue stream from aircraft ground handling services.
Cargo handling operations also saw notable growth, reflecting the expansion of Nigeria’s import and export sector. The rise in cross-border trade and logistics demand fueled higher cargo volumes, with improved efficiency in warehouse management and handling operations contributing to enhanced service delivery. The company invested in state-of-the-art cargo processing systems and advanced storage facilities, allowing for faster turnaround times, increased capacity, and better tracking mechanisms. These advancements positioned Nigerian Aviation Handling Company Plc as a preferred partner for cargo logistics in Nigeria’s growing aviation sector.
Capital Expenditures & Shareholder Returns
- Total Assets: ₦20.08 billion (2024) vs. ₦12.13 billion (2023)
- Total Equity: ₦20.08 billion (2024) vs. ₦12.13 billion (2023)
- Dividend Paid: ₦4.95 billion
- Retained Earnings Growth: ₦17.34 billion (2024) vs. ₦9.40 billion (2023)
The company made significant capital investments to upgrade ground handling equipment, expand airport infrastructure, and enhance technological capabilities. These investments included the procurement of state-of-the-art aircraft servicing vehicles, automated baggage handling systems, and advanced air cargo processing technologies, which have improved efficiency and reduced turnaround times for airlines and cargo operators.
Additionally, the company has expanded and modernized terminal facilities, increasing capacity to accommodate higher passenger traffic and cargo volumes. Infrastructure enhancements, such as upgraded fueling stations, aircraft maintenance bays, and improved logistics hubs, have further strengthened the company’s ability to handle larger aviation demands.
This resulted in a 101% increase in total assets, ensuring strong financial positioning for future expansion. By focusing on scalability, operational resilience, and long-term sustainability, Nigerian Aviation Handling Company Plc is positioning itself as a key player in the evolving aviation services industry, ready to capitalize on further market growth and expansion opportunities.
Management Commentary
Key Takeaways:
- Revenue growth was fueled by increased aviation traffic and expanded cargo operations.
- Investments in operational efficiency and automation improved profitability.
- Higher administrative costs were offset by strategic revenue and cost management initiatives.
- Future growth expected from new airline partnerships, infrastructure expansion, and digital transformation efforts.
Strategic Initiatives:
- Expansion of airport ground handling capacity to support rising airline operations.
- Investments in automated handling systems for improved efficiency.
- Enhanced customer service offerings to improve airline and passenger experience.
- Sustainable business strategies focused on cost optimization and resource efficiency.
Outlook for 2025
Nigerian Aviation Handling Company Plc remains optimistic about continued revenue and profitability growth, supported by:
- Further expansion of airport operations and handling services.
- Ongoing investments in automation and equipment upgrades to enhance service delivery.
- Strengthened cost optimization strategies to sustain profitability.
- Exploration of regional expansion opportunities to tap into new aviation markets.
With a strong balance sheet, advanced operational capabilities, and a focus on innovation, the company is well-positioned for long-term value creation and sustained market leadership. By leveraging cutting-edge technology, automation, and data-driven insights, Nigerian Aviation Handling Company Plc is actively enhancing service efficiency, streamlining logistics, and optimizing resource management.
Additionally, the company’s commitment to sustainability and regulatory compliance further strengthens its market presence, ensuring alignment with global aviation standards. With continuous investments in infrastructure expansion, talent development, and digital transformation, Nigerian Aviation Handling Company Plc aims to consolidate its competitive advantage and drive long-term shareholder value.
Conclusion
Nigerian Aviation Handling Company Plc delivered exceptional financial performance in 2024, marked by 87% revenue growth, a significant increase in profitability, and robust shareholder returns. The company’s strategic investments in technology, infrastructure, and operational efficiency have solidified its leadership in the aviation handling sector and positioned it for continued success in 2025 and beyond.
The company’s ability to scale its operations efficiently while maintaining high service quality has been instrumental in achieving this growth. By deploying state-of-the-art ground handling equipment, automated logistics tracking systems, and streamlined passenger and cargo operations, the company has significantly enhanced its operational productivity.
Additionally, strategic partnerships with major airlines and cargo carriers have played a crucial role in driving sustained revenue growth. Investments in workforce training and digital transformation have also bolstered service efficiency, ensuring a seamless customer experience and improved turnaround times. With an eye on future expansion, the company plans to strengthen its market position through further technological advancements, regional expansion, and sustainable business strategies.
