ABC Transport Plc experienced a significant financial turnaround in the first quarter of 2025, reporting a profit after tax of N223.2 million compared to a loss of N79.1 million in the same period of 2024. This positive performance was primarily driven by a substantial 57.4% increase in revenue, reaching N3.63 billion. This growth was attributed to increased passenger transport services and improved logistics operations. However, the company also faced challenges, including a substantial foreign exchange loss of N116.4 million due to currency devaluation and its involvement in international operations. Despite this setback, the overall financial performance showed a marked improvement compared to the previous year.
The company’s revenue growth was accompanied by a corresponding increase in direct costs, which rose by 62.1% to N2.87 billion. This increase reflects the higher expenses associated with expanding operations and serving a larger customer base. Despite the higher costs, ABC Transport maintained a healthy gross profit of N760 million, exceeding the N536.2 million achieved in the first quarter of 2024. This indicates the company’s ability to manage costs effectively while expanding its revenue streams.
Administrative expenses also witnessed a significant increase, rising by 30.4% to N475.2 million, primarily due to higher overhead costs, including personnel and facility expenses. Despite these increased expenses, the company’s operating profit saw a substantial improvement, reaching N284.8 million compared to N171.5 million in the prior-year period. This underscores the company’s ability to leverage increased revenue to offset rising costs and ultimately improve profitability. Furthermore, the company benefited from a significant increase in other operating income, which jumped by 95% to N116.6 million, further bolstering its financial performance.
Beyond operational improvements, ABC Transport also saw positive developments in other financial areas. Other gains amounted to N51.1 million, a stark contrast to the loss of N126 million experienced in the previous year. Finance costs, including interest expenses, decreased slightly to N101.5 million, further contributing to the improved bottom line. These combined factors resulted in a profit before tax of N352.1 million, a significant turnaround from the pre-tax loss of N20.1 million in Q1 2024. After accounting for income tax expenses, the company achieved a net profit of N223.2 million.
While the profit after tax reflected a strong recovery, the substantial foreign exchange loss of N116.4 million significantly impacted the total comprehensive income, which stood at N106.8 million. Despite this, the result represents a considerable improvement from the comprehensive loss of N235.8 million reported in the first quarter of 2024. The earnings attributable to equity shareholders reached N194.7 million, while non-controlling interests contributed N28.4 million. The company reported basic and diluted earnings per share of 3.93 kobo, a positive turnaround from the loss per share of 3 kobo in the previous year.
The company’s balance sheet also reflects growth and improved financial strength. Total assets increased significantly to N14.3 billion at the end of March 2025, compared to N7.39 billion in the same period of 2024. This growth was primarily driven by a substantial increase in property, plant and equipment, which rose to N10.6 billion from N4.31 billion year-on-year, suggesting significant investments in infrastructure and operational capacity. Total liabilities also increased to N12.92 billion from N6.39 billion, likely reflecting increased financing activities to support the company’s expansion. Shareholders’ funds rose to N1.12 billion from N592.3 million, indicating a stronger capital base. Including non-controlling interests, the total equity stood at N1.38 billion, a notable improvement from N996 million in the first quarter of the previous year. This overall strengthening of the balance sheet further solidifies the company’s positive financial trajectory.
