Paragraph 1: Overview of UPDC’s Financial Performance in 2024
UPDC Plc experienced substantial financial growth in 2024, marked by a significant surge in profit after tax. The company’s reported profit after tax reached N836.91 million, a remarkable 278% increase compared to N221.51 million in the previous year, 2023. This impressive growth can be primarily attributed to a substantial rise in revenue, which climbed by 121% from N5.34 billion in 2023 to N11.79 billion in 2024. This revenue growth fueled a corresponding increase in gross profit, which rose by 79% to N3.40 billion in 2024, despite a simultaneous increase in the cost of sales.
Paragraph 2: Analysis of UPDC’s Income Statement
A closer examination of UPDC’s income statement reveals further details of its financial performance. While administrative expenses increased moderately from N1.64 billion in 2023 to N1.97 billion in 2024, selling and distribution expenses saw a more pronounced rise, reaching N550.07 million compared to N111.24 million in the preceding year. Other operating income, however, experienced a decline of 13%, settling at N434.07 million compared to N501.06 million in 2023. Credit loss expenses also increased from N84.92 million to N163.60 million. Notably, the company avoided losses from its joint venture in 2024, contrasting with a loss of N5.51 million recorded in 2023. These factors contributed to a more than twofold increase in operating profit, reaching N1.15 billion in 2024 compared to N563.60 million in the previous year.
Paragraph 3: Exploring UPDC’s Financial Position
UPDC’s financial position also saw significant changes in 2024. The company’s total assets experienced a substantial 58% growth, reaching N30.99 billion compared to N19.66 billion in 2023. This asset growth was driven by a notable increase in inventories, which surged to N8.73 billion from N3.20 billion, and a more than doubling of cash balances, reaching N11.50 billion from N4.92 billion. On the liabilities side, total liabilities increased to N21.50 billion from N10.83 billion, primarily due to a significant increase in trade and other payables, which rose sharply to N17.79 billion from N5.82 billion in 2023. Total equity also experienced growth, reaching N9.49 billion from N8.84 billion.
Paragraph 4: Profitability and Dividend Distribution in 2024
UPDC’s financial performance translated into increased profitability, with profit before taxation surging by 244% to N1.31 billion in 2024 from N379.94 million in 2023. While tax expenses also increased significantly, reaching N472.01 million from N158.43 million, the resulting net profit still marked a significant improvement at N836.91 million compared to N221.51 million in 2023. As a result of the improved financial performance, UPDC’s Board of Directors approved a dividend of 1 kobo per ordinary share, translating to a total payout of N185.60 million based on 18.56 billion outstanding shares. This is a notable development compared to the absence of dividend declarations in 2023.
Paragraph 5: Comprehensive Income and Attribution of Profit
While UPDC experienced a robust increase in net profit, its total comprehensive income presents a slightly different picture. A fair value loss of N186.78 million on financial assets in 2024, contrasting with a gain of N453.61 million in 2023, impacted the total comprehensive income, which stood at N650.13 million compared to N675.11 million in the previous year. The profit attributable to equity holders of the parent company was N432.19 million, while the non-controlling interest accounted for N404.72 million of the profit.
Paragraph 6: Key Highlights and Discrepancies in Reported Figures
In summary, UPDC’s 2024 financial results demonstrate significant growth in key areas, including revenue, gross profit, operating profit, and ultimately, profit after tax. This strong performance led to the declaration of a dividend, a positive sign for shareholders. The company also experienced substantial growth in total assets, driven by increases in inventories and cash balances. However, an increase in liabilities, particularly trade and other payables, warrants attention. It’s essential to note a discrepancy in reported figures: while the initial information states a 278% increase in profit after tax, The PUNCH reported a 509% increase. This difference highlights the importance of verifying information from multiple sources and seeking clarification on potential discrepancies.
