Julius Berger records highest Q1 profit in 5 years

Julius Berger Nigeria Plc in its first-quarter financial results reported a 31.8 percent increase in profit after tax to N3.7 billion compared to N2.8 billion in the previous year, the highest in five years, findings by BusinessDay showed.

According to the unaudited report and provisional results filed at the Nigerian Exchange Limited (NGX) for the period ended March 31, 2022, the company declared a total revenue of N106 billion, a 49 percent increase as against N71 billion in the preceding year.

Revenue from the Nigerian market provided the drive for the 49 percent growth in total revenue recorded in the first quarter. Revenue generated in Nigeria during the period amounted to N105.1 billion.

Cost of Sales increased by 56.8 percent to N91 billion in 2022 from N58 billion in 2021. Similarly, the company saw its profit before tax surge 58 percent to N5.47 billion in 2022 from N3.45 billion in 2021.

According to the financial statement, the company has three operating segments; civil engineering, building, and facility management services. Each of these segments offers construction services to third parties across Nigeria.

A breakdown of the Q1 financial statement shows that civil works contributed the highest revenue with a total of N65.16 billion from both government and private sectors.

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Revenues from other segments like building works and facility management services amounted to N34 billion and N7.2 billion respectively.

The construction company recorded an increase in investment income of N719 million for Q1 2022 compared to N103 million for the corresponding 2021 period while its finance cost decreased to N591 million from N636 million in the period under review.

Total assets recorded by the company rose by 35 percent to N465.79 billion in March 2022 against N344.3 billion recorded in the corresponding period in 2021.

Similarly, the company’s net assets, which is its total asset less than its total liabilities, grew by 16 percent from N47.3 million in 2021 to N54.8 million in 2022.

A BusinessDay analysis of the cash flow statement reveals that the construction company’s cash and cash equivalent (liquid asset) increased to N44 billion in 2022 from N17 billion in the preceding year.

Net cash generated by operating activities rose to N10.5 billion in the first three months of 2022 from N6.3 billion in the same period in 2021. This means the company able to manage its cash and pay off its financial obligation.

Similarly, net cash generated from investing activities also grew to N7.3 billion in the first quarter of 2022 from N3.9 billion in the corresponding period of 2021.

Julius Berger also recorded an increase in cash used in financing activities from N826 million in Q1 2021 to N991 million in Q1 2022.

Earnings per share for the period declined to N1.08 kobo from N1.52 kobo in the first three months of 2021.

Julius Berger Nigeria Plc is a Nigerian company offering holistic services covering the planning, design, engineering, construction, operation, and maintenance of buildings, infrastructure, and industrial projects in Nigeria.