Purple Group grows nine months pre-tax profit by 650.1% to N1.5bn

Purple Real Estate Income Plc (Purple Group) has announced its unaudited results for the nine months (9M) ended September 30, 2022. The Group reported gross earnings of N5.9 billion, up 207.8 percent year-on-year (9M 2021: N1.9 billion).

Also, the Group’s profit before tax (PBT) of N1.5 billion went up by 650.1 percent year-on-year (9M 2021: N198.2 million). Profit after tax (PAT) of N1.3 billion represents an increase by 552.7 percent year-on-year (9M 2021: N198.1 million).

It also recorded net revenue of N2.5 billion, up by 95.9 percent year-on-year (9M 2021: N1.3 billion); and total other income of N63 million (9M 2021: N134.9 million). Its total operating income grew by 81.4 percent to N2.5 billion year on year (9M 2021: N1.4 billion).

Purple Group adjusted operating expenses grew by 48.3 percent to N1 billion year-on-year (9M 2021: N676.2 million). Earnings before interest, taxes, depreciation, and amortisation (EBITDA) of N2 billion, up by 175percent year-on-year (9M 2021: 738.9 million).

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Operating profit [or Earnings before interest and taxes (EBIT)] of N1.9 billion, up 181.09 percent year-on-year (9M 2021: N709.1 million). In the nine months under review, Purple Group’s total assets increased by 18.3 percent to N31.3 billion year-to-date (FY 2021: N26.4 billion). Total liabilities of N21.2 billion represent an increase by 21.8 percent year-to-date (FY 2021: N17.4 billion). Shareholders’ funds rose to N10 billion (FY 2021: N9 billion).

Key ratios

The Group reported a net revenue margin of 41.3percent (9M 2021: 64.9percent), cost-to-income of 39.9percent (9M 2021: 48.8percent), EBITDA margin of 37.6percent (9M 2021: 41.2percent), operating profit margin of 36.9percent (9M 2021: 39.5percent), profit before tax margin of 27.6percent (9M 2021: 11percent), and a leverage ratio of 2.0x (FY 2021: 2.1x).

Commenting on the performance, Laide Agboola, Chief Executive Officer, Purple Group stated: “The strong performance in the second quarter of 2022 has been reinforced by our third quarter’s performance, and we have maintained very good momentum in practically all of our key measures as a result. Operationally, we expanded our clientele base and progressed on our core and peripheral business lines.

As a Company with multiple revenue streams spanning principal investment, financial services, private equity, real estate and lifestyle development – which blends retail, family fun, e-commerce, entertainment, food and drinks, co-working, and accommodation. We are committed to investing heavily in the growth and improvement of our platform, leveraging technology and partnerships, and continuously enhancing the quality of service we provide to our clients to drive long-term sustainability.”