Oando Plc delivered an improved performance in the third quarter of 2025, reporting a profit before tax of N165.2 billion, a turnaround from the N14.3 billion loss recorded in the same period last year.
Profit after tax also rose sharply to N137.9 billion in the company’s unaudited statement, compared to N13.6 billion in Q3 2024.
For the nine-month period, profit before tax stood at N19.4 billion, down from N31.1 billion a year earlier, while profit after tax surged to N201.3 billion from N76.2 billion, largely driven by increased tax credit.
The improved quarterly results were driven by lower administrative expenses and stronger finance income, which helped offset the impact of weaker revenue and higher impairment charges.
Key Highlights: Q3 2025 vs Q3 2024
- Revenue: N820.66 billion (-29.2% YoY)
- Cost of Sales: N766.84 billion (-26.7% YoY)
- Gross Profit: N53.82 billion (-52% YoY)
- Other Operating Income: N11.1 billion (-61.1% YoY)
- Administrative Expenses: N30.86 billion (vs N83.24 billion in Q3 2024)
- Operating Profit: N48.98 billion (+25.3% YoY)
- Finance Income (Net): N115 billion (vs a N54.7 billion loss in Q3 2024)
- Profit Before Tax: N165.2 million (vs a N14.4 million loss in Q3 2024)
- Earnings Per Share (EPS): 1 kobo (vs 0 kobo)
Revenue declines, but margins hold up
Oando’s Q3 2025 revenue fell by 29.2% year-on-year to N820.6 billion, from N1.15 trillion in the same period last year, likely due to reduced trading volumes.
- However, the cost of sales also declined by 26.7%, helping the company preserve profitability despite the revenue pressure.
- Gross profit stood at N53.82 billion, down from N112 billion in Q3 2024, while gross margin came in at 6.6%, slightly lower than the 9.7% recorded a year earlier.
The results suggest that Oando is prioritizing cost control and margin stability, even as top-line growth remains under pressure.
Operating profit improves despite headwinds
Oando recorded operating income of N48.98 billion in Q3 2025, up from N39.08 billion in the same quarter last year.
- Other operating income dropped to N11.09 billion (from N28.5 billion).
- Impairment losses more than doubled to N46.7 billion.
- More favorably, admin expenses improved sharply, swinging to N30.8 billion from a negative N83.2 billion.
Despite lower income and higher impairments, reduced expenses helped lift operating profit year-on-year.
Strong finance income lifts Q3 profit
Oando’s Q3 bottom-line profit was largely driven by a sharp rise in finance income:
- Finance income jumped to N209.7 billion, from just N9.6 billion in Q3 2024.
Finance costs rose to N94.7 billion, up from N64.4 billion last year.
- This resulted in a net finance gain of N115 billion, compared to a loss of N54.7 billion a year earlier.
The company also recorded a small profit from associates (N1.18 billion).
As a result, profit before tax rose to N165.2 billion, from a loss of N14.3 billion, while profit after tax increased to N137.9 billion, despite a tax expense.
Balance sheet snapshot
Oando’s balance sheet shows modest improvements, though the company remains in a negative equity position.
- Total Assets: N6.77 trillion, up 5.2% year-to-date, driven mainly by property, plant, equipment, and intangible assets.
- Total Liabilities: N6.98 trillion, up 2.7%, mainly due to higher borrowings and trade payables.
- Total Equity: Negative N209.4 billion, an improvement from negative N361 billion at the start of the year, with a retained loss of N88 billion, an improvement from a loss of N292.4 billion.
While equity remains in the red, the narrowing deficit suggests some progress toward balance sheet repair.
