UPDC reduces losses to N115.9m in H1, 2024

By Esther Agbo

UPDC Plc has reported a reduced loss of N115.9 million for the first half of 2024, marking an 11.59 percent improvement from the N131.1 million loss recorded in the same period in 2023.

This update was revealed in the company’s second-quarter consolidated and separate financial statements filed with the Nigeria Exchange Limited on Monday.

The company saw a 21 percent increase in revenue, rising from N2.15 billion in the first half of 2023 to N2.60 billion. This growth was primarily driven by the real estate and hospitality segments, which benefited from higher sales and improved occupancy rates in key properties.

Operating profit saw a significant turnaround, shifting from a loss of N1.59 million in 2023 to a gain of N70.74 million. Additionally, taxes for the period were reduced by 32 per cent, from N89.36 million in 2023 to N60.73 million, contributing to the reduction in overall loss.

However, selling and distribution expenses increased by 156 percent, from N37.883 million in 2023 to N97.065 million in 2024. Despite this rise, administrative expenses decreased by 32 percent, from N1.07 billion in 2023 to N810.76 million, helping to mitigate overall costs.

As of June 30, UPDC’s cash and cash equivalents stood at N4.53 billion, an 8 percent decrease from N4.92 billion in December 2023.

The company’s total equity fell slightly by 1 percent, from N8.84 billion in 2023 to N8.72 billion in June 2024.

UPDC also reduced its total liabilities by 6 percent, from N19.66 billion in 2023 to N18.56 billion in June, reflecting effective debt management and repayment efforts. The market capitalisation of UPDC as of June 30 was N25.80 billion, with the company’s shares trading at N1.39 each at the end of the review period.

Looking forward, UPDC plans to leverage its core strengths in real estate and hospitality, focusing on strategic investments and operational excellence to drive sustainable growth and profitability in the upcoming quarters.