SAHCO regains mojo as Q4 profit hits N530m on higher revenue, drop in administrative expense
After a disappointing 2018 when SAHCO recorded a loss of N665million, the cargo handling company has bounced back to the path of profitability.
In its unaudited financial statements for the period ended 31 December, SACHO’s revenue jumped 24.9percent from 6.13bn to N7.66bn. Although, the company’s direct cost, which is a price that can be directly tied to the production of specific goods or services, surged 21.5percent to N4.28bn from N3.52bn leaving gross profit at N3.38bn still 30percent higher than N2.60bn recorded in the same period the previous year.
The company recorded a net profit of N530.17 million from a loss of N530million in 2018. Administrative expenses also dropped 12.9percent to N2.43bn from N2.79bn
Analysis of its revenue reveals that Cargo Handling Income stood at N4.43bn from N3.41bn, revenue from Hajj operations surged to N183.16m from a meager N37million in 2018, Equipment rental also increased N278.9m from N145.81m
Skyway Aviation Handling Company Plc. (SAHCO), one of the aviation ground handling companies in the country came into being in 2009 following a prolong and complex privatization exercise.
Sifax Shipping Limited and Global Apex Logistics Limited through SAHCO Limited acquired a 100percent stake of the Federal Government in Skypower Aviation Handling Company Limited as a result of the privatization of the company. Global Apex Logistics Limited, however, sold its stake in the shares of the company. SAHCOL merged with Skypower in 2018 with the former being the surviving entity.
SACHO has invested in acquiring new equipment such as the LAM 35 High loader which is the first in the Nigerian Aviation Ground Handling industry and also the baggage tow trucks which has the biggest capacity in Cargo and baggage loading of up to 40 tonnes.
As part of SACHO’s expansion plans, the company is building a 3-level commercial structure to accommodate its growing clientele, recently completed the construction of an Export Cargo Accepting Bay to accommodate the growing export industry in Nigeria and this is being used judiciously while empowering its Engineering and Maintenance team to innovate by building some equipment as well.