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Five takeaways from Julius Berger’s three-month financial performance

Five takeaways from Julius Berger’s three-month financial performance

Julius Berger Nigeria Plc, a construction company, saw a 348.9 percent growth in its earnings in the first quarter of 2024, according to BusinessDay analysis.

In the firm’s latest financial statement, its after-tax profit more than quadrupled to N10.1 billion from N2.24 billion in the same period of 2023.

The company’s resilience was evident in its share price as it rose to N72.4 on May 15 from N43 on January 2, making it one of the top-performing stocks in the building construction sector of the Nigerian Exchange Limited.

Here are key highlights from the company’s financial statement

Cash from operating activities showed resilience

Julius Berger demonstrated resilience in its cash from operating activities, reflecting the core business activity’s strength.

The firm’s cash flows (used in)/ from operating activities was a positive of N11.8 billion from a negative of N36.3 billion while net cash flows (used in)/ from investing activities rose to N5.89 billion from N395 million.

Net cash flows (used in)/ from financing activities was a negative of N2.3 billion from a positive of N28.4 billion. The company’s cash and cash equivalents increased marginally to $47.7 billion from $45.5 billion.

The increase in the construction firm’s cash and cash equivalents reflects positively on its ability to meet its short-term debt obligations.

Investment income surged by 506%

The company recorded a 505.9 percent rise in investment income to N4.54 billion from N750 million due to higher interest income generated during the reviewed period.

Its earnings from other gains and losses also rose to N11.6 billion from N1.7 billion. This was driven by a 1,900 percent increase to N9.4 billion from N470 million and an 83 percent rise to N2.2 billion from N12 billion in its proceeds from the disposal of property plant and equipment.

Revenues rose to N111bn

Julius Berger’s revenue rose to N110.9 billion from N107 billion.

This increase in the company’s revenue was on the back of an 83 percent growth in its service revenue, 38 percent growth in its building works revenue and a 72 percent increase in its diversification revenue.

However, its revenue from civil work dropped to N66 billion from 81 billion during the reviewed period.

Julis Berger generated its revenue from Africa and Europe, with Africa amounting to N105 billion and Europe with N5.4 billion.

Earnings per share rose to 13-year high

Julius Berger’s earnings per share rose the highest in at least 13 years to N6.26 from N1.40.

Higher or increasing EPS indicates profitability, meaning the company may increase dividend payout over time.

Shareholders’ equity grew to N148bn

The shareholders’ equity of Julius Berger increased to N148 billion, up 59.7 percent from N59.6 billion.

The rise in the company’s equity was driven by foreign currency translation reserves which rose to N87.9 billion and N16.2 billion, and its retained earnings from N58.8 billion and N42.1 billion.

Shareholders’ equity is a company’s net worth, or the total amount of money that would be returned to shareholders if the company was liquidated and all debts paid off.