John Holt, a Nigerian conglomerate, recorded a 140 percent growth in its after-tax profit in nine months of 2024 despite foreign exchange crisis that has continued to deplete business revenue.
According to its latest financial report, revenue surged by 72 percent to N3.1 billion from N1.8 billion in the nine months ended of 2024, driven by eroding sales of goods and services.
The sales of finished goods contributed 82.5 percent of total revenue with N2.6 billion from N1.35 billion while property, rents and repair services accounted for 12.7 percent and 4.7 percent respectively.
In 9M 2024, John Holt recorded a 58.7 percent increase in its foreign exchange loss to N2 billion from N1.2 billion loss in the same period last year.
Regardless, its after-tax profit surged to N2.4 billion at the end of September 2024 from a loss of N1 billion and its pre-tax profit rose by 150 percent to N2.5 billion from a loss of N1 billion while its gross profit amounted to N616 million.
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Other operating income surged by 713.6 percent to N4.8 billion from N587 million at the end of nine months in 2023, thanks to the support of its parent company.
John Holt is a subsidiary of John Holt & Co. Limited, a British company in Liverpool. The parent company contributed 72.3 percent to N3.4 billion while fair value investment gains on properties contributed 21.7 percent to its operating income in nine months of 2024.
This subsidiary operates in Nigeria as a group of companies in charge of the assembly and distribution of power generators, leasing equipment, distribution of fire-fighting equipment, logistics, boat building and fabrication of industrial and agricultural equipment.
In 9M 2024, the conglomerate had a 92.3 percent surge in cost of sales to N2.5 billion from N1.3 billion in the previous year, driven by a rise in the cost of selling finished goods which rose by 86.2 percent.
The sales of finished goods on technical products and leasing services rose to N2.28 billion from N1.01 billion, sales from services and repairs stood at N146 million from N134 million while sales on property rent and warehousing rose to N203 million from N167 million.
John Holt experienced a significant increase in its Earnings per share to N6.34 in 9M’24 from a loss of N2.36 in 9M’23.
However, the Group’s total assets declined to N1.7 billion from N8.6 billion due to a reduction in cash and the absence of related party receivables while its non-current asset rose to NN7 billion from N5.7 billion, driven by a 60 percent increase in property and investment properties and leasehold lands with leasehold buildings of 29.5 percent of property, plant and equipment.
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