Paragraph 1: NAHCO’s Record-Breaking Financial Performance in 2024
The Nigerian Aviation Handling Company (NAHCO) Plc achieved unprecedented financial success in 2024, reporting its strongest performance to date. The company’s pre-tax profit doubled to an impressive N18.70 billion, while revenue surged by 88.5% to reach N53.54 billion. This robust growth propelled the company’s net profit after taxes to N12.86 billion, a remarkable 132% increase from the previous year. Earnings per share also mirrored this growth, reaching N6.60, a 132% leap from N2.84 in 2023. This outstanding financial performance underscores NAHCO’s strategic initiatives and its ability to capitalize on opportunities within the aviation sector.
Paragraph 2: Rewarding Shareholders with Increased Dividends and a Five-Year Growth Plan
In response to the exceptional 2024 performance, NAHCO’s board of directors recommended a substantial 134% increase in dividend payout to shareholders. A total of N11.58 billion, equivalent to N5.94 per share, was proposed for distribution, more than doubling the N4.95 billion distributed in 2023. This significant increase reflects the company’s commitment to rewarding its investors and sharing the benefits of its success. Furthermore, NAHCO unveiled an ambitious five-year growth plan targeting a revenue of N300 billion by 2029. This plan underlines the company’s confidence in its future prospects and its commitment to sustained growth and expansion. The 2024 revenue of N53.54 billion already exceeded the projected revenue of N38.49 billion by 39%, demonstrating the strong momentum with which NAHCO has embarked on this new growth trajectory.
Paragraph 3: The Roadmap to N300 Billion: Diversification and Strategic Investments
NAHCO’s five-year strategic business plan, presented to investors in December 2024, outlines a clear roadmap for achieving the ambitious N300 billion revenue target. The plan projects successive revenue increases, reaching N71.12 billion in 2025, N101.93 billion in 2026, N146.07 billion in 2027, N209.34 billion in 2028, and culminating in N300 billion by 2029. This growth strategy hinges on diversifying the group’s businesses both within and outside Nigeria. The plan identifies key revenue streams, with the main ground handling business expected to contribute N120 billion, cargo handling N40 billion, and NAHCO Logistics Services N36 billion. Other subsidiaries, including NAHCO Free Zone, NAHCO Commodities, NAHCO Travel & Hospitality, and NAHCO Aviation Academy, are also expected to make significant contributions, totaling N105 billion.
Paragraph 4: Leadership’s Vision for Growth and Shareholder Returns
Dr. Seinde Fadeni, Chairman of NAHCO, expressed confidence in the company’s ability to achieve its N300 billion revenue target, citing ongoing investments and emerging opportunities. He emphasized that the five-year plan will not only strengthen existing businesses but also unlock new opportunities, driving further diversification and growth. Dr. Fadeni highlighted the company’s commitment to maximizing shareholder value, emphasizing that the recent dividends and capital gains, already among the highest in the Nigerian capital market, represent just the beginning of substantial returns for investors. He underscored NAHCO’s consistent track record of paying high dividends and reiterated the company’s dedication to increasing profitability through strategic investments in manpower and equipment.
Paragraph 5: Transforming NAHCO: A Four-Pillar Approach
Dr. Sola Obabori, Group Executive Director of International Business and Corporate Services, elaborated on NAHCO’s five-year transformation journey, outlining a four-pillar strategy to achieve sustainable growth and operational excellence. These pillars encompass accelerating business growth, differentiating through operational excellence, leading with digital innovation, and fostering a transformed people and culture. Dr. Obabori emphasized the company’s commitment to achieving specific performance goals by 2029 while simultaneously expanding its service offerings. This comprehensive approach demonstrates NAHCO’s proactive stance in adapting to the evolving aviation landscape and leveraging technological advancements to enhance its operations and customer experience
Paragraph 6: NAHCO Group: A Diversified Conglomerate with a Broad Portfolio
The NAHCO Group is a diversified conglomerate with interests spanning various sectors within the aviation industry and beyond. Its core business lies in aviation ground handling and cargo handling, but its portfolio extends to airport management, aviation training, free trade zones, commodities export, and energy solutions. This diversified structure provides NAHCO with a broad base for growth and resilience. The group’s subsidiaries include Mainland Cargo Options Limited, Nahco Free Trade Zone Limited, NAHCO Power Solutions Limited, NAHCO Management Services, NAHCO Travels & Hospitality Limited, NAHCO Aviation Academy, and NAHCO Commodities Limited. These subsidiaries contribute to the group’s overall strength and enable NAHCO to capitalize on opportunities across multiple sectors, further solidifying its position as a key player in the Nigerian economy.
