Nigerian Aviation Handling Company Plc Soars to New Heights with Record-Breaking Financial Performance in 2024
The Nigerian Aviation Handling Company Plc (NAHCO) has concluded the fiscal year 2024 on an exceptionally high note, registering remarkable growth across key financial indicators. The company’s audited financial results showcase a surge in profitability, revenue, and earnings per share, solidifying its position as a leading player in the aviation ground handling sector. This outstanding performance underscores NAHCO’s strategic focus on operational efficiency, cost management, and capitalizing on the increasing demand for aviation services within the Nigerian market and beyond.
NAHCO’s profit after tax witnessed a substantial leap of 65%, reaching an impressive N12.87 billion in 2024 compared to N5.54 billion in 2023. This significant increase is attributed to a combination of factors, including a remarkable 87% surge in revenue, which reached N53.2 billion in 2024, up from N28.4 billion in the previous year. This remarkable revenue growth can be attributed to a confluence of factors, including a significant increase in the demand for ground handling services, coupled with the company’s proactive efforts towards enhancing operational efficiencies. NAHCO’s strategic investments in modernizing its infrastructure and equipment, as well as implementing innovative ground handling procedures, have played a pivotal role in optimizing its operations and enabling it to effectively cater to the burgeoning demand.
While NAHCO enjoyed robust revenue growth, the company also experienced a rise in operating expenses, which increased to N21 billion in 2024 from N13.4 billion in 2023. This increase primarily stems from heightened operational activities, reflecting the company’s expanded service offerings and increased client base. Similarly, administrative expenses also rose to N11.3 billion from N6.1 billion in the previous year, further reflecting the company’s expansion and investment in human capital and administrative infrastructure. Despite these increased costs, NAHCO’s robust revenue growth ensured sustained profitability.
Despite the rise in operating expenses, NAHCO effectively managed its cost structure, resulting in a remarkable doubling of gross profit to N32.2 billion in 2024 from N15 billion in the previous year. This significant increase in gross profit demonstrates the company’s ability to effectively control costs while simultaneously capitalizing on the surging demand for its services. NAHCO’s profit before tax also witnessed a dramatic 111% surge, reaching N18.3 billion in 2024 compared to N8.68 billion in the previous year, underpinned by improved cost management strategies and the buoyant revenue growth.
The company’s financial performance also highlights improved financial management. Finance income increased to N146 million from N20 million, while finance costs rose to N1.18 billion from N202 million in 2023, largely due to increased financing activities supporting the company’s growth trajectory. Tax expenses also increased to N5.43 billion from N3.14 billion, reflecting the company’s higher earnings and its contribution to the national economy.
Furthermore, earnings per share, a key indicator of shareholder returns, experienced a substantial jump to 660 kobo from 284 kobo in 2023. This impressive growth demonstrates the company’s ability to generate significant value for its shareholders. Looking towards the future, NAHCO has articulated an ambitious target of achieving N300 billion in total group revenue over the next five years. This ambitious target underscores the company’s confidence in its growth prospects and its commitment to further expanding its market presence. This growth strategy is likely to involve a combination of organic expansion, strategic acquisitions, and diversification of service offerings.
In conclusion, NAHCO’s exceptional financial performance in 2024 reflects the company’s robust business model, its ability to capitalize on market opportunities, and its commitment to delivering value to its stakeholders. The company’s strategic focus on operational efficiency, cost management, and customer satisfaction has positioned it for sustained growth and success in the dynamic and competitive aviation industry. As NAHCO sets its sights on achieving even more ambitious financial targets in the years to come, it is poised to solidify its position as a leading provider of aviation ground handling services in Nigeria and beyond. The company’s continuous investments in infrastructure, technology, and human capital, combined with its dedication to providing world-class services, will undoubtedly contribute to its continued success in the aviation sector.
