• Friday, June 14, 2024
businessday logo

BusinessDay

UPDC posts lowest loss in six years

UPDC posts lowest loss in six years

UPDC Plc loss slows to N290.62 million in the nine-month period of 2022 from N1.81 billion loss in the nine-month period of 2021, making it the lowest loss reported by the company in six (6) years.

The dip in the firm’s loss is on the back of a 240 percent and 111 percent increase in revenue and other operating income reported for the period.

Its revenue grew to N2.09 billion in the nine-month period of 2022 from N1.81 billion in the nine-month period of 2021, while other operating income rose to N196 million in the nine-month period of 2022 from N93 million in the corresponding period of 2021.

Further analysis shows that the firm generated N1.96 billion from property development sales & management, and N126.6 million from hospitality services during the nine-month period of 2022.

Cost of sales claimed 63 percent of UPDC’s total revenue during the period and grew significantly by 150 percent on the back of rising inflation to N1.32 billion in the nine-month period of 2022 from N529 million in the corresponding period of 2021.

Read also: African banks’ credit drivers to undermine global, domestic shocks in 2023- Fitch

Its total operating expense rose by 46.18 percent to N880 million in the nine-month period of 2022 from N602 million in the nine-month period of 2021, with administrative expenses and selling and distribution expenses growing by 48 percent and 19 percent respectively during the period.

Finance income rose to N66 million in the nine-month period of 2022, 61 percent up from N41 million in the nine-month period of 2022, and despite rising interest rates which impacted the firm’s borrowings from banks, finance costs declined by 31.41 percent to N393 million in the nine-month period of 2022 from N573 million of the nine-month period of 2021.

UPDC reported a 9.13 percent increase in total assets to N19.22 billion in the nine-month period of 2022 from N21.15 billion in the corresponding period of 2021.

In the same vein, its total shareholder’s equity declined by 2.48 percent to N8.26 billion in the nine-month period of 2022 from N8.47 billion in the nine-month period of 2021.

Cash and cash equivalents also declined by 15.17 percent to N3.02 billion in the nine-month period of 2022 from N3.56 billion in the nine-month period of 2021.

The movement of the firm’s cash and liquid cash shows that the firm generated enough cash from its core business operations during the period. Its net cash flow from operations in the nine-month period of 2022 amounted to N1.26 billion, up from N-219 million in the same period of 2021.

Net cash flow from investing activities totaled N56 million in the nine-month period of 2022, a 94 percent decrease from N972 million in the nine-month period of 2021. Net cash flow from

financing activities amounted to N-171 million in the nine-month period of 2022, largely due to N173 million worth of interest paid during the period.