Aradel Holdings Plc has announced its audited financial results for the year ending on December 31, showing resilience in bottom-line and top-line metrics.
It was the first financial statement since its going public last year, which saw it adding N3.4 trillion to the market capitalisation. The financial statement revealed significant growth across key performance metrics, driven by higher revenues, improved operational efficiency and strategic investments.
The report showed the group posted a profit after tax (PAT) of N247.79 billion, representing a substantial year-on-year (Y/Y) growth of 361 per cent from N53.74 billion recorded in 2023.
The earnings surge reflects the company’s ability to optimise its operations and expand revenue streams. This saw the earnings per share (EPS) almost quadrupling, from N12.37 kobo to N57.07 kobo. The growth in earnings is a rare trend in the capital market.
The spike in profits rode partly on cost optimisation and efficiency.
Its revenue rose by over 163 per cent, from N221.1 billion to N581 billion. This growth was driven by higher sales volume and an increase in investment-related income. Gross profit nearly doubled, reaching N319.81 billion in 2024 compared to N142.32 billion in 2023, translating to a 124.8 per cent increase.
The operating profit of the group showed significant improvement, rising by 160.8 per cent to N297.47 billion in 2024 from N114.06 billion in 2023.
Net finance cost remained at a manageable level, with finance income at N15.96 billion compared to N6.61 billion in 2023, while finance costs stood at N23.03 billion, up from N11.72 billion in the previous year.
On a quarter-on-quarter basis, revenue grew significantly, with Q4 2024 revenue exceeding Q3. The company also experienced higher quarterly profitability, sustaining its upward momentum throughout the year while pointing to a robust near-term outlook.
Looking at the balance sheet, total assets nearly doubled, increasing by 89 per cent from N923.43 billion in 2023 to N1.74 trillion in 2024. This growth was driven by a significant rise in non-current assets, which reached N1.22 trillion, up from N658.92 billion in 2023.
Investments in associates also increased sharply from N270.23 billion to N489.53 billion, over an 80 per cent increase.
Current assets also showed robust growth, surging by 99.8 per cent to N528.3 billion from N264.51 billion in the previous year. The company’s cash and bank balances also rose significantly from N194.62 billion to N422.21 billion, highlighting a strong liquidity position.
Total shareholders’ equity increased by 97.5 per cent, according to the financial statement, reaching N1.39 trillion in 2024, up from N704.64 billion in 2023. This reflects the company’s strong retained earnings growth and higher translation reserves.
On the liabilities side, total liabilities increased to N352.05 billion from N218.79 billion in 2023. But non-current liabilities rose to N133.15 billion, while current liabilities increased to N218.89 billion.
Whereas current liabilities grew by 141 per cent to N218.9 billion in the operating year, the current assets also doubled to N528.3 billion, suggesting the company is well positioned to meet financial responsibility.
In the meantime, the speed of borrowing has slowed, from N44.35 billion to N40.95 billion in the year under review.
The company maintained a healthy financial position, with cash balances far exceeding total borrowings.
The CEO, Adegbite Falade, highlighted the company’s operational and financial strides.
The Company sustained its strong operational and financial performance in 2024, building on the improvements achieved in 2023. We recorded increased topline and bottom line, driven by significantly higher hydrocarbon production, the successful re-entry of Well 2ST in the Omerelu Field, which resulted in the attainment of First Oil on 31st May 2024, and increased sales volumes from our refinery operations,” he said.
Aradel’s strong asset base, growing equity, and controlled liability increase suggest financial stability and ability to sustain long-term profitability and expansion.
Aradel’s landmark year in 2024 was capped by its successful listing on the NGX in October.
Aradel Holdings’ strong performance in 2024 highlights its ability to navigate market dynamics and harsh economic environment while maintaining strong profitability.
The company’s strategic investments, revenue diversification and operational efficiencies may have also positioned it for sustained growth.
The company’s listing by the introduction last year pushed up market capitalisation by 6.1 per cent, from N56.09 trillion to N59.51 trillion. Its shares were listed at N702.69 per unit.