The Nigerian Exchange Group has reported its 2024 full-year results, showing a 157.62% surge in pre-tax profit to N13.581 billion, compared to N5.272 billion in 2023.
According to the company’s annual report and audited consolidated financial statements for the year ended December 31, 2024, reviewed by Nairametrics, gross earnings more than doubled to N23.991 billion.
In recognition of this exceptional performance, the Board of Directors has approved a final dividend of N4.4 billion, translating to N2.00 per share, the highest dividend payout in the Group’s history.
The dividend will be paid to shareholders whose names appear in the Register of Members as of the close of business on Thursday, March 13, 2025.
Key highlights (2024 vs. 2023):
- Total income: N23.991 billion +103.24% YoY
- Total operating expenses: N15.801 billion +38.96% YoY
- Operating profit: N8.190 billion +1,791.33% YoY
- Share of profit-equity accounted investees: N5.420 billion +11.61% YoY
- Profit after tax: N9.920 billion +88.920% YoY.
- Earnings per share: N4.2 +72.84% YoY
- Cash and cash equivalents: N871 million -86.76% YoY
- Total assets: N68.040 billion +13.70% YoY
- Retained earnings: N44.865 billion +23.15% YoY
- Total equity: N48.547 billion +23.02% YoY
- Net cash flow from operating activities: N9.033 billion +2,840.20% YoY
Company comment
Group Chairman, Alhaji Dr. Umaru Kwairanga, stated:
“These results mark a pivotal moment in NGX Group’s post-demutualisation growth journey, reinforcing investor confidence in our long-term vision. The approval of a record N4.4 billion dividend demonstrates our unwavering commitment to rewarding shareholders while positioning NGX Group as a key driver of capital market development.”
Group Managing Director/CEO, Mr. Temi Popoola, added:
“NGX Group’s remarkable performance in 2024 reflects our strategic focus on execution, operational excellence, and innovation. The 157.3% increase in profit before tax underscores the strength of our execution strategy and the dedication of our team. By leveraging technology, expanding market data solutions, and strengthening our partnerships, we have built a more resilient and diversified business model that positions us for sustained growth.”
Insights:
According to the company’s press release, the strong growth in total income was driven by significant increases across key revenue streams:
- Transaction fees rose 64.0%, driven by heightened market activity.
- Listing fees increased by 397.1%, reflecting stronger capital market participation.
- Technology related income grew by 105%, reflecting the success of the group’s digital transformation efforts
- Other fees recorded a 174.8% growth, reinforcing the Group’s diversified revenue base.
- Treasury investment income climbed 45.6%, highlighting NGX Group’s effective asset management.
- Market data revenue grew by 100.5%, contributing to a 102.6% rise in other income, which now accounts for 29.6% of gross earnings.
Expense efficiency improves, but room for optimization remains
- The total expenses-to-gross earnings ratio improved significantly, dropping from 96% in 2023 to just over 65% in 2024.
- While this reflects better cost management, there is still room for further optimization to enhance profitability.
Shift in pre-tax composition:
- The share of profit from equity-accounted investees grew 11.61% YoY to N5.420 billion, reflecting the continued profitability of the Group’s associate companies, including CSCS.
- However, there was a notable shift in pre-tax profit composition, with profits from associate companies; primarily CSCS accounting for 39.91% in 2024, compared to over 92% in 2023. This indicates that the Group’s core business operations contributed a significantly larger share of earnings than in previous years.
Strong core operations amid liquidity concerns
- The company’s core operational performance remained robust, reflected in the significant growth in operating profit, operating cash flow, and operating profit margin.
- Net cash flow from operating activities surged 2,840.20% YoY to N9.033 billion, demonstrating strong cash generation from core business operations.
- However, cash and cash equivalents fell sharply by 86.76% YoY to N871 million, contributing to a decline in the current ratio to 0.54 from 1.27 in 2023. This signals potential short-term liquidity concerns despite improved cash flow from operations.
Stronger financial position:
- Total assets grew 13.70% YoY to N68.040 billion, driven by improved earnings and higher retained profits.
- Total equity and retained earnings increased by 23.02% and 23.15% YoY, respectively, reinforcing financial stability.
- The balance sheet expansion of 13% and a reduction in total borrowing strengthened the company’s financial position, with leverage declining by 8% to 1.40, signaling improved financial health.
Market performance
NGXGROUP’s share price has shown mixed performance in recent years. After declining 6% YtD in 2023, it rebounded with a 16% YtD gain in 2024. As of February 28, 2025, the stock is up 10.1% YtD, ranking 56th on the NGX.
Trading activity remains relatively strong, with 59.1 million shares exchanged over the past three months, making it the 73rd most traded stock on the NGX.
The record N4.4 billion dividend payout (N2.00 per share) could further boost investor sentiment and potentially drive additional upside as the market reacts to the strong earnings and improved returns.
