Ardova grows pre-tax profit by 129% in half year

Ardova Plc unaudited results for the six-month (H1) ended June 30, 2021 show revenue of N85.96 billion, down 1.6percent year-on-year (yoy) as against N87.3 billion in the corresponding half-year of 2020.

Profit before tax (PBT) of N2.7 billion, represents an increase of 129percent from N1.2 billion in same period of 2020; while profit after tax (PAT) of N1.8 billion, went up 82.6percent (June 2020: N1billion). Earnings per share of N1.42 (June 2020: N0.78).

Operating expense of N4.5 billion, up 4.3percent yoy (June 2020: N4.3 billion); net finance cost of N320million down 7.2percent (June 2020: N350million).

Shareholder funds of N19.8 billion, up 8.8percent year-to-date (December 2020: N18.2 billion); and total assets of N67.9 billion, up 8.8percent year-to-date (December 2020: N62.4 billion).

Key Business/Operational Highlights

“A-/Stable Outlook”, issuer rating affirmed by Global Credit Rating (GCR); A/Positive Outlook” issuer rating by Data Pro; Ardova Brand won two awards at the Transform Awards in Dubai; Best Corporate rebrand and Best naming strategy respectively. Ardova signed Share Purchase Agreement for a 100 percent stake in Enyo Retail and Supply Limited.

Commenting on the results, Olumide Adeosun, the Chief Executive Officer said: “Our performance in the first half of 2021 reflects our commitment to deliver sustainable returns in the face of a challenging operating environment. We maintained a healthy working capital position, grew margins significantly despite the shortfall in the volume of products experienced in the first quarter, and effectively reined in cost amidst a high inflationary pressured environment”.

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“Gross profit grew by 32percent, leading to a higher margin of 8.2percent compared to 6.1percent in the corresponding year. Similarly, operating expenses rose by 4.3percent, below the headline inflation rate of 17.7percent. The company also continued its run of sterling growth in profitability with profit before tax and profit after tax increasing by 129percent and 83percent respectively”, Adeosun said.

“As an energy company focused on creating clean and sustainable energy, we increased the number of retail outlets powered by solar during the quarter and rolled out our battery-as-a-service solution in semi-urban communities to bridge the gap in electrical power supply experienced in these areas. In the coming months, we aim to extensively improve our market penetration in this regard in line with our growth plans. Our resolve to increase our share of wallet in low carbon energy through liquefied petroleum gas is yielding the desired outcome.

“The milestones we have achieved in the last two years of our transformational journey indicate that we are on track with our vision for the company. We remain focused on building an efficient downstream integrated energy company that is well-positioned to drive profitable growth and create long-term value for shareholders,” the CEO added.