Ardova’s Q1 scorecard shows good start to 2021

Ardova Plc has released its unaudited results for the three months (Q1) ended March 31, 2021. The Group’s Q1’21 result at the Nigerian Exchange (NGX) Limited shows profit before income tax (PBT) of N1.198billioncompared to N580.303million in the corresponding Q1 period of 2020.

Though the group revenue decreased in Q1’21 to N41.986billion as against N52.051 billion in Q1’20, gross profit of N3.346billion in Q1’21 came higher than N2.788 billion recorded in Q1’20 period. The group’s profit after tax increased to N858.68million in Q1’21 from a low of N497.445million in Q1’20 period.

Commenting on the results, Olumide Adeosun, the Chief Executive Officer said: “We had a good start in the first quarter of 2021 despite the PMS supply challenges that impacted product volumes and topline revenue across the downstream sector. AP delivered significant improvement in margins and continued its steady track towards core asset optimization and improved operational efficiency.”

The Group’s retained earnings of N11.546billion in Q1’21 came higher than retained earnings of N10.893billion it recorded in Q1’20.

“Our resolve to build a resilient and agile enterprise was evident in the sterling growth of 108percent in profit before tax achieved by the firm. We delivered this performance through the efficient distribution of our white products across our value chain and a stronger focus on growing revenue from our non-fuel businesses. Consequently, margins came in higher at 7.7percent from 5.4percent in the corresponding period, while operating expense declined by 24.3percent amidst a high inflationary pressured environment”, the CEO noted further.

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“Our operational efficiency ratio further improved to 4.7percent from 5percent reported in Q1 2020. Working capital position remained healthy with a debt coverage of 21.1percent at the Company and 37.6percent at the Group. The improved capital position further reflects the strength of our balance sheet as we drive our growth aspirations with investments made in clean energy solutions,” Adeosun said.

He noted that the Group’s haulage and transportation business, Axles and Cartage, also achieved a positive gross margin of 43percent within the first three months of the year, “reflecting our drive to build a viable and well-diversified business. The performance of this business within a short cycle also serves as a pointer to the sustainable returns we intend to achieve once our liquified petroleum gas and renewable energy projects commence full operations. We will continue to focus on our strategic priorities and commit firmly to delivering superior customer experience across all service touchpoints.”

“Looking ahead, we remain dedicated to sustaining this positive start through the year as we continue to work at delighting our customers and building shareholders’ confidence in our company,” Adeosun added.