Julius Berger Nigeria Plc reported a pre-tax profit of N5.9 billion for the first quarter ended March 31, 2025, a sharp 64.68% decline from the N16.7 billion recorded in the same period in 2024, as rising costs and currency losses eroded the impact of strong topline growth.
According to the construction giant’s unaudited financial results, revenue rose by 62.80% year-on-year to N180.5 billion, driven largely by the company’s core civil engineering projects.
Civil works contributed N125.1 billion, while building works and services accounted for N30.2 billion and N25.2 billion, respectively.
However, the strong revenue growth was matched by a significant increase in costs. Cost of sales surged to N153.1 billion, eating into margins and leaving a gross profit of N27.4 billion, which still reflected a 30.69% improvement compared to N20.9 billion in Q1 2024.
Key Highlights
- Revenue: N180.5 billion, +62.80% YoY
- Cost of Sales: N153.1 billion, +70.29% YoY
- Gross Profit: N27.4 billion, +30.69% YoY
- Administrative Expenses: N22.6 billion, +46.42% YoY
- Other Gains: N75.2 million, -99.22% YoY
- Operating Profit: N3.1 billion, -76.53% YoY
- Pre-tax Profit: N5.9 billion, -64.68% YoY
- Retained Earnings: N62.6 billion, +6.21% YoY
Julius Berger’s bottom line was weighed down by a combination of higher operating expenses and a reversal in foreign exchange positions.
Administrative expenses jumped by 46.42% to N22.6 billion, reflecting inflationary pressure and cost escalations in project execution.
Additionally, the company recorded a net foreign exchange loss of N1.8 billion, a stark contrast to the N9.4 billion FX gain recorded in the same quarter of 2024.
This reversal significantly impacted the company’s other income line. ‘Other gains’ plummeted from N9.6 billion in Q1 2024 to just N75.2 million in Q1 2025.
Consequently, operating profit dropped by 76.53% to N3.1 billion, down from N13.2 billion in the corresponding period last year. Investment income also declined by 17.52% to N3.7 billion, compared to N4.5 billion in Q1 2024.
Despite the earnings dip, Julius Berger’s balance sheet remained resilient. Total assets rose to N1.05 trillion, up 37.31% year-on-year, while retained earnings increased by 6.21% to N62.6 billion, reflecting underlying financial stability and retained value for shareholders.
Julius Berger’s Q1 results reflect the broader challenges facing Nigeria’s infrastructure and construction sector, where rising input costs, currency volatility, and project delays continue to exert pressure on profitability despite top-line growth.
As of the trading day ended 30th April 2025, shares of the company were priced at N137.00, reflecting a YtD loss of 11.76%.
