Amid rising costs, ABC transport Q2 2024 revenue surges 71%

ABC Transport has released its financial results for

the second quarter of 2024, revealing a notable increase in revenue but a sharp decline in profitability.

The company’s pre-tax profit for the period stood at N57.3 million, a significant 32.20 percent decrease from the N84.6 million reported in the same quarter of 2023.

Despite a substantial 71.05 percent year-over-year surge in revenue, reaching N2.4 billion compared to N1.4 billion in 2023, the company’s profitability was heavily impacted by rising expenses.

The direct costs increased by 73.44 percent, totaling N1.9 billion, which eroded much of the gains from increased revenue.

The company’s financial statement for Q2 2024 also highlighted a 69.36 percent year-over-year drop in net income, which fell to N15.5 million.

This decline is primarily attributed to the significant increase in direct costs, driven largely by the soaring price of petroleum products.

The National Bureau of Statistics reported that the average petrol price in May 2024 was N769.62 per litre, representing a staggering 223.21 percent increase from N238.11 per litre in 2023.

Other key financial metrics also reflected the challenging quarter. Gross profit rose by 61.90 percent to N481.6 million, but this was not enough to offset the higher administrative expenses, which climbed 30.36 percent to N355.2 million. Additionally, the finance cost grew by 27.32 percent to N224 million, further compressing profit margins.

The decline in profitability was also mirrored in the company’s earnings per share, which dropped by 69.34 percent year-over-year to N0.006, Pre-tax profit, N57.36 million, -32.20 percent YoY, Net Income, N15.5 million, -69.36 percent YoY. ABC Transport’s stock is currently trading at N0.80 per share on the Nigerian stock markets.

While ABC Transport managed to achieve impressive revenue growth, the increased costs associated with petroleum products and other expenses significantly impacted its bottom line.