C&I Leasing Plc has released its 2024 financial year ended December 31, 2024, reporting profit after tax of N1.6 billion; marking a 480% YoY growth compared to 2023.
Similarly, revenue grew by 64% year-on-year to N36.7 billion.
At the core of this performance was the company’s thriving lease rentals business, which contributed N31.1 billion, a 66% increase from N18.7 billion in 2023.
Additionally, net outsourcing income grew 17.3% to N1.4 billion, further highlighting the company’s diversified revenue model.
Commenting on the results, Group Managing Director, Mr. Ugoji Lenin Ugoji, credited the company’s strategy for navigating a tough business climate:
“Despite current market realities, we have been able to deliver an impressive set of results on account of business expansion and the resilience of our business model. The year 2024 was another challenging year… but we remained focused on operational efficiency, cost control, and diversification,” he said.
Indeed, EBITDA margin improved to 58.1% from 52.7% in 2023, highlighting better cost management, while net profit margin rose to 4.4% from just 1.2% in the prior year.
The company’s earnings before interest and taxation (EBIT) nearly doubled to N13.24 billion, reflecting stronger core performance despite rising finance costs.
Also notable is the 82% increase in shareholders’ equity to N48.2 billion, largely driven by a N33.7 billion gain from foreign currency translation reserves — a reflection of naira devaluation on the company’s offshore assets. While this provides a buffer for future growth, it also introduces some FX sensitivity into the capital base.
At the same time, net debt to EBITDA fell to 2.95x from 4.25x, showing a much-improved debt servicing capacity.
Yet, challenges remain. The company’s asset turnover ratio declined to 0.38x from 0.44x, signaling that its fast-growing asset base is yet to translate fully into efficiency gains.
Still, Ugoji remains cautiously optimistic about 2025:
“While crude oil production increased compared to the previous year, it still fell short of budget benchmarks and OPEC quota… We expect moderation in oil prices, which may result in reduced marine rates, but we will continue to provide superior services to our stakeholders,” he stated.
Insight
This performance represents a strategic comeback for C&I Leasing. The steep profit growth isn’t merely a result of higher revenue—it’s also from improved margins, balance sheet strengthening, and a sharper focus on core business lines like marine leasing and outsourcing.
The compression in leverage ratios suggests improved operational stability, which is vital in a high-interest-rate environment. However, investors may want to monitor marine rates and crude oil developments in 2025, as these may affect leasing rates and third-party contracts.
With EPS rising from 26.15 kobo to 115.02 kobo, and improved capital structure, C&I Leasing is repositioning itself as a solid mid-cap player with better earnings quality and financial resilience.
