• Friday, April 12, 2024
businessday logo

BusinessDay

Soaring input cost dents Africa Prudential’s earnings

Soaring input cost dents Africa Prudential’s earnings

Africa Prudential, an investment service provider in Nigeria, has seen its input cost rise by 383 per cent in the first nine months of 2023.

This development can be hinged on IT infrastructure, IT outsourcing, and software which cost N653.23 million, N186.45 million, and N9.16 million respectively in 9M’2023.

Africa Prudential’s input cost surged to N848.84 million in 9M’2023 from N175.9 million in the same period of 2022.

The firm’s revenue from contracts with customers, however, grew marginally to N1.56 billion from N1.15 billion during the period.

Gross profit inched down to N706.53 million in 9M’2023 from N974.45 million in the same period of 2022.

Credit loss expense increased to N15.28 million in 9M’2023 from N1.43 million in the similar period of 2022.

The firm’s net operating income surged to N3.01 billion in 9M’2023 from N2.82 million in the same period of 2022.

Read also: Africa Prudential records 48% decline in H1 pre-tax profit

Net operating income is driven by interest income which amounted to N2.28 billion and other income which amounted to N23.52 million.

Africa Prudential’s personnel expenses surged to N727.9 million in 9M’2023 from N538.37 million in the same period of 2022.

Profit after tax dipped to N871.39 million in 9M’2023 from N1.29 billion in the similar period of 2022.

Earlier this year, Africa Prudential bagged ISO 9001: 2015 (Quality Management System) and ISO 23001:2019 (Business Continuity Management System) certifications.

These certifications are in addition to the already existing ISO 27001:2013 (Information Security Management System), which the company received in 2020.

The certifications followed a comprehensive audit and evaluation exercise conducted by MSECB – an internationally recognised certification body.

“The implementation of the ISO 27001:2013, ISO 9001:2015, and ISO 23001:2019 standards assure companies and individuals doing business with Africa Prudential that the company is resilient and able to consistently provide products and services that meet customer and applicable statutory and regulatory requirements.”

Read also: Africa Prudential posts 21% rise in nine-month gross earnings

Revenue from digital technology services amounted to N958.58 million, fees from corporate actions amounted to N322.45 million and registrar maintenance amounted to N274.34 million in the nine months of 2023.

IT expenses dipped to N94.4 million in 9M’2023 from N135.81 million in the similar period of 2022.

Interest on short-term deposits increased to N1.75 billion in 9M’2023 from N4.55 million in the same period of 2022.

Interest on bonds dropped to N104.29 million in 9M’2023 from N117.92 million in the same period of 2022.

Interest on loans and advances to N417.78 million in 9M’2023 from N1.7 billion in the same period of 2022.

Dividend income dipped to N21.67 million in 9M’2023 from N23.98 million in the same period of 2022.

The final dividend paid stood at N0.50 equity dividends on ordinary shares in 9M 2023 from N0.50 in the same period of 2022.