The Nigerian Aviation Handling Company Plc (NAHCO) has reported remarkable financial results for the first half of 2025, demonstrating significant growth and improved operational efficiency. The company’s profit after tax soared by an impressive 166.7%, reaching N8.88 billion compared to the same period in 2024. This surge in profitability was fueled by a substantial increase in revenue, which more than doubled to N32.33 billion, representing a 102.06% growth year-on-year. NAHCO’s robust financial performance extends across key metrics, with gross profit rising by 117.7% to N19.16 billion and operating profit experiencing a 126.9% increase to N11.64 billion. These figures underscore the effectiveness of the company’s strategic initiatives and operational improvements. The upward trend also reflects in the company’s earnings per share, which jumped to N4.55 from N1.71 in H1 2024, signifying increased value for shareholders.
NAHCO’s success story in the first half of 2025 is further emphasized by the substantial improvement in its profit margins. The gross profit margin expanded from 55% to 59.26%, indicating enhanced efficiency in managing production costs. Similarly, the operating profit margin witnessed a significant increase to 36% from 32.06%, demonstrating the company’s ability to control operating expenses while growing revenue. The pre-tax profit margin also improved, reaching 36.5% compared to 29.7% in the previous year. This overall improvement in profitability showcases NAHCO’s effective cost management strategies and successful revenue generation initiatives. The company’s return on total assets and return on equity also witnessed substantial growth, further bolstering its financial standing.
The company’s outstanding first-half performance has positioned it to potentially surpass its full-year results for 2024. In 2024, NAHCO recorded a profit before tax of N18.70 billion, more than double the N8.68 billion achieved in 2023. This growth was driven by an 88.5% increase in revenue, which reached N53.54 billion. Gross profit also exhibited significant growth, reaching N33.08 billion from N15 billion in the previous year. The company also saw a substantial increase in operating profit, rising to N19.84 billion from N8.86 billion, underpinned by improved operational performance and strategic initiatives. NAHCO’s strong financial performance in 2024 allowed for a generous dividend payout to shareholders, demonstrating its commitment to rewarding investors.
NAHCO’s Chairman, Seinde Fadeni, attributes the company’s success to its focused implementation of a five-year strategic blueprint. This blueprint aims to propel revenue above N300 billion by diversifying the company’s operations and enhancing its core business. Fadeni emphasizes the company’s commitment to sustainable growth and its strategic investments in equipment, technology, and human capital. NAHCO has demonstrated a strong focus on employee well-being by increasing staff salaries by 50%. Furthermore, the company is implementing Oracle ERP and HCM systems, signifying its commitment to digital transformation and operational efficiency. These investments highlight NAHCO’s proactive approach to enhancing its capabilities and positioning itself for long-term success.
In line with its diversification strategy, NAHCO is venturing into the hospitality sector and expanding its commodities export business. The company is also undertaking a significant re-fleeting initiative, aiming to replace all ageing assets by December 2025. This commitment to modernizing its equipment demonstrates NAHCO’s proactive approach to maintaining operational efficiency and ensuring long-term sustainability. The diversification strategy coupled with the asset renewal program positions the company for continued growth and expansion into new markets.
Group Managing Director, Olumuyiwa Olumekun, highlights the commissioning of the NAHCO Export Packaging and Processing Centre in Lagos, a significant milestone in the company’s expansion strategy. This facility, the first of its kind in Nigeria, aims to enhance the competitiveness of local products in the global market. Olumekun emphasizes the company’s focus on four key areas: equipment upgrade, digitization, environmental, social, and governance (ESG) initiatives, and business diversification. These strategic priorities underpin NAHCO’s commitment to sustainable growth and its transformation into a diversified logistics group. The company recognizes the importance of ESG factors in its operations and is committed to responsible and sustainable business practices. Olumekun expressed confidence in the company’s future prospects and reiterated its commitment to delivering value to shareholders.
