The investment income of Julius Berger, a construction company in Nigeria, has more than tripled in the first nine months of 2023.
BusinessDay analysis of the company’s financial statement showed the construction company’s investment income grew by 281 percent to N3.85 billion in the first nine months from N1.01 billion in the same period of 2022.
However, finance costs increased similarly to N3.77 billion from N2.39 billion. Julius Berger’s net finance income amounted to N8,000 from a net finance cost of N1.38 billion.
Revenue grew to N333.4 billion from N309.81 billion driven by civil works which accounted for N229.28 billion, building works at N61.61 billion, services at N41.84 billion, and diversification at N665.38 million in nine months of 2023.
The cost of sales grew to N272.41 billion from N259.67 billion. Marketing expenses increased to N612 million from N89.76 million while administrative expenses inched up to N42.39 billion from N34.64 billion.
Net foreign exchange gains dipped to N2.9 billion from N4.89 billion. Impairment on trade and tax receivables grew to N3.37 billion from N2.63 billion. Other gains and losses rose to N6.53 billion from N5.39 billion.
Income tax expenses surged to N6.05 billion from N5.2 billion. Profit after tax increased to N9 billion from N6.96 billion.
Total borrowings amounted to N24.4 billion from N3.59 billion. Current borrowings increased to N23.75 billion from N2.31 billion.
Non-current borrowings increased to N642.86 million from N1.28 billion. Total assets grew to N649.35 billion from N528.79 billion and total equity surged to N85.93 billion from N51.28 billion.
Total liabilities to N563.42 billion from N477.51 billion. Cash and cash equivalents amounted to a positive N136.98 billion from a negative N3.37 billion.
Net cash flow from operating activities stood at a positive of N64.61 billion from a negative of N43.39 billion.
Net cash from investing activities stood at a positive of N5.13 billion from a negative of N16.69 billion. Net cash from financing activities stood at a positive of N9.83 billion from a negative of N8.9 billion. Earnings per share increased to N5.63 from N4.35.
In November, the company announced the exit of two executive directors on its board. Both resignations would take effect from December 31, 2023.
According to the National Bureau of Statistics, Nigeria’s construction sector in the third quarter of 2023 grew to 3.89 percent from 3.42 percent in the previous quarter.
