Nigerian Aviation Handling Company (NAHCO) Plc recorded three-digit growth across incomes and profitability in a remarkable first-half performance that strengthens the earnings outlook of the West Africa’s leading aviation handling group.
Half-year report and accounts of NAHCO for the six-month period ended June 30, 2025, released at the Nigerian Exchange (NGX), showed that the leading aviation handling group doubled group revenue by 102.06 per cent to N32.33 billion in first half 2025 as against N16.0 billion recorded in the comparable period of 2024.
Gross profit grew by 117.73 per cent from N8.80 billion to N19.16 billion. Operating profit jumped by 126.9 per cent to N11.64 billion in first half 2025, as against N5.13 billion in the first half of 2024.
With improved cost management, pre-tax profit leapt by 148.21 per cent from N4.75 billion in the first half of 2024 to N11.79 billion in first half 2025. Net profit after tax rose by 166.7 per cent from N3.33 billion to N8.88 billion.
With these, earnings per share (EPS) tripled from N1.71 in first half 2024 to N4.55 in first half 2025, providing significant headroom for possible increase in dividend payouts.
Underlying ratio analysis underlined the growth in the group’s core business operations and increasingly efficient cost management.
Gross profit margin improved from 55 per cent in first half 2024 to 59.26 per cent in first half 2025. Operating profit margin increased from 32.06 per cent to 36.0 per cent. Pre-tax profit margin also improved from 29.7 per cent to 36.5 per cent.
Also, return on total assets tripled from 7.09 per cent to 20.14 per cent. Return on equity also jumped to 51.09 per cent as against 16.59 per cent.
Market analysts were unanimous that the first half 2025 strengthened the outlook for NAHCO, which had increased dividend payout by 134 per cent for the 2024 business year.
NAHCO had distributed N11.58 billion as cash dividends for the 2024 business year, representing a dividend per share of N5.94, compared with N4.95 billion paid for the 2023 business year.
The half-year 2025 results also placed NAHCO on stronger footing to surpass its 2024 full-year performance, which had been hailed as a record performance.
The audited report and accounts of NAHCO for the year ended December 31, 2024 had shown that profit before tax doubled by 115.4 per cent to N18.70 billion in 2024 as against N8.68 billion in 2023. Total revenue rose by 88.5 per cent from N28.40 billion in 2023 to N53.54 billion in 2024. With increased top-line efficiency, gross profit increased by 120.53 per cent to N33.08 billion in 2024 as against N15 billion in 2023.
Operating profit also jumped by 123.93 per cent from N8.86 billion to N19.84 billion, underscoring the fact that the group’s performance was driven mainly by core business operations.
Market analysts believed that the significance and consistency of its growth trajectory reinforced optimism that the leading aviation group could achieve its N300 billion revenue target.
Speaking on the outlook of the group, Chairman, Nigerian Aviation Handling Company (NAHCO) Plc, Dr Seinde Fadeni, said the board and management remain committed to further diversifying its businesses as part of strategies to drive the group’s revenue above N300 billion within the next five years.
According to him, a five-year growth strategy being implemented by the company would enhance existing businesses and diversify into other emerging opportunities.
He said the board and management are completely focused on implementing the company’s five-year strategic blueprint, which would drive the next phase of the growth of the group.
He said the company has continued to strengthen its position as the market leader in aviation ground handling while diversifying into new opportunities.
Fadeni pointed out that the company is undergoing a transformative change that has seen improvement in operating strategy, equipment, staff welfare and management and significant investments in technical know-how and new opportunities.
He pointed out that NAHCO has demonstrated remarkable resilience despite challenges in the operating environment, adding that the company has been positioned for an even more rewarding future.
He said the company plans to deepen its diversification by building a hotel while also growing its commodities export business.
“The company continues to adapt and push forward, maintaining operational efficiency and striving to uphold its standard of service excellence and increased shareholders’ value.
“The board understands the important place of technology in modern business and is committing funds into providing the company with next-generation technology to enable it to run its processes smoothly and efficiently. The company is currently implementing Oracle ERP and HCM systems, a pivotal initiative designed to enhance NAHCO’s efficiency and digital transformation.
“In the last year, the company has been re-fleeting its equipment. We have a target to replace all ageing equipment by December 2025,” Fadeni said.
He pointed out that the recent 50 per cent increase in salary, along with the existing annual profit-sharing initiative and semi-annual performance bonus scheme, reflected the company’s commitment to staff welfare.
He said the Industry Champions Award given to the company by the industry regulator, Nigeria Civil Aviation Authority (NCAA), was indicative of what NAHCO stands for in the aviation industry.
He said: “We have emerged over time as the face of resilience in the aviation industry. We support good causes. We represent the best in Nigeria’s aviation in corporate governance, in staff welfare and in profitability”.
Group Managing Director, Nigerian Aviation Handling Company (NAHCO) Plc, Mr Olumuyiwa Olumekun, highlighted some operational achievements to include the recertification of the company in three major stations of Lagos, Abuja and Kano and the commissioning of a new NAHCO Export Packaging and Processing Centre, Lagos.
According to him, the new centre, the first of its kind in Nigeria, was a strategic move to enhance the competitiveness of Nigerian products on the global stage while creating more jobs for Nigerians.
“We have embarked on a journey that not only strengthens our foothold in the global market but also contributes to the economic development of Nigeria,” Olumekun said.
He outlined that the group would focus on four areas of sustained growth, equipment re-fleeting, digitization and environmental social governance (ESG) to ensure better performance in the period ahead.
He explained that the diversified nature of the group and the onboarding of new business ventures would ensure that the group sustain its growth trajectory.
“Since transiting from being the foremost ground handling service provider in the entire sub-region to being a diversified, total logistics group, we have been driven by the earnest desire to provide an unmatched level of excellent service delivery to our clients. This commitment has become more urgent as we seek to satisfy new demands for excellence and to improve shareholder value,” Olumekun said.
He commended shareholders, customers and staff of the company for their support and commitment, which have continued to enable the group to perform better every year.
“We will continue to work together to ensure even better performance for the company,” Olumekun said.
