Presco Plc released its financial report for the third quarter of 2024, recording a pre-tax profit of N16.6 billion, an increase from N10.8 billion in the same quarter of 2023.
This 53.49% year-over-year increase brings the cumulative pre-tax profit for the nine-month period ending September 30, 2024, to N67 billion.
The company’s Q3 revenue rose by 40.82% year-over-year, reaching N40.5 billion compared to N28.7 billion in 2023.
Gross profit also increased by 57.80%, and earnings per share rose from N8.39 in Q3 2023 to N12.89 in Q3 2024.
Key Highlights (Q3 2024 vs. Q3 2023)
Revenue: N40.5 billion, +40.82% YoY
Cost of Sales: N13.6 billion, +16.18% YoY
Gross Profit: N26.8 billion, +57.80% YoY
Finance Cost: N4 billion, +99.59% YoY
Finance Income: N193.4 million, +822.42% YoY
Pre-tax Profit: N16.6 billion, +53.49% YoY
Post-tax Profit: N12.8 billion, +53.62% YoY
Earnings Per Share: N12.89, +53.64% YoY
Total Assets: N207.3 billion, +21.75% YoY
Commentary
- Presco Plc demonstrated growth in Q3 2024, with revenue surging 40.82% year-over-year to N40.5 billion, up from N28.7 billion in 2023.
- The company’s cost of sales also increased, reaching N13.6 billion—a 16.18% rise from the prior year—yet gross profit still grew strongly, climbing 57.80% to N26.8 billion.
- Finance costs nearly doubled, increasing from N2 billion in Q3 2023 to N4 billion in Q3 2024, reflecting a 99.59% year-over-year rise. Finance income rose significantly as well, by 822.42% to N193.4 million.
- The pre-tax profit for Q3 reached N16.6 billion, marking a 53.49% year-over-year increase, while cumulative pre-tax profit for the nine-month period totalled N67 billion.
- Post-tax profit increased by 53.62%, reaching N12.8 billion, and earnings per share rose to N12.89 from N8.39 in the previous year.
Asset Position
- Presco Plc’s total assets expanded by 21.75% year-over-year, reaching N207.3 billion as of September 30, 2024, up from N170.3 billion in the previous year.
- The bulk of non-current assets consisted of property, plant, and equipment, valued at N118.5 billion.
- At the same time, current assets, primarily consisting of trade receivables and biological assets, amounted to N85.8 billion, providing support for the company’s short-term liquidity.
Cash Flow Overview
- The company’s cash flow from operating activities increased by 94.94% year-over-year to N75.6 billion, due to higher inflows from trade and other payables.
- Cash used in investing activities was N22.6 billion, mainly directed toward acquiring property, plant, and equipment.
- Financing activities resulted in a N36 billion cash outflow, leaving cash and cash equivalents at N11.4 billion by the end of the period.
