Ardova records drop in revenue first quarter

Ardova Plc has announced a drop in revenue to N41.6 billion in three months ended March 31 against N51.2 billion recorded during the same period of 2020.

Mr Olumide Adeosun, the Chief Executive Officer of the company, said the unaudited financial results sent to the Nigerian Exchange (NGX) Ltd., in Lagos.

According to the report, revenue of N41.6 billion decreased from N52.1 billion posted in the same period of the corresponding year.

“Operating expense of N1.9 billion, down by 24.3 per cent y-o-y but recorded N2.6 billion in March of 2020; also, Net finance cost of N0.18 billion, meanwhile, N0.15 billion was recorded in March 2020,” it said.

Adeosun said that profit before tax of N1.2 billion, up 108.1 per cent y-o-y against 0.58 billion in March 2020; profit after tax of N0.85 billion increase by 70.9 per cent y-o-y from N0.49 billion recorded last corresponding year.

He also said earnings per share of 65 kobo increased from 38 kobo as at the same period of 2020.

Adeosun explained that “We had a good start in the first quarter of 2021 despite the PMS supply challenges that impacted product volumes and top line revenue across the downstream sector.

“AP delivered significant improvement in margins and continued its steady track towards core asset optimisation and improved operational efficiency.

“Our resolve to build a resilient and agile enterprise was evident in the sterling growth of 108 per cent in profit before tax achieved by the firm.

“We delivered this performance through the efficient distribution of our white products across our value chain and a stronger focus on growing revenue from our non-fuel businesses.

“Consequently, margins came in higher at 7.7 per cent from 5.4 per cent in the corresponding period, while operating expense declined by 24.3 per cent amidst a high inflationary pressured environment.

“Our operational efficiency ratio further improved to 4.7 per cent from 5.0 per cent reported in Q1 2020. Working capital position remained healthy with a debt coverage of 21.1 per cent at the Company and 37.6 per cent at the Group.

“The improved capital position further reflects the strength of our balance sheet as we drive our growth aspirations with investments made in clean energy solutions.” 

The company’s chief also noted “The group’s haulage and transportation business, Axles and Cartage also achieved a positive gross margin of 43 per cent within the first three months of the year, reflecting our drive to build a viable and well-diversified business.

“The performance of this business within a short cycle also serves as a pointer to the sustainable returns we intend to achieve once our liquified petroleum gas and renewable energy projects commence full operations.

“We will continue to focus on our strategic priorities and commit firmly to delivering superior customer experience across all service touch points.

“Looking ahead, we remain dedicated to sustaining this positive start through the year as we continue to work at delighting our customers and building shareholders’ confidence in our company,”Adeosun said.