NAHCO records N8.88bn H1 profit

The Nigerian Aviation Handling Company Plc (NAHCO) has announced an impressive 166.7% year-on-year growth in its profit after tax, reaching ₦8.88 billion for the half-year ended June 30, 2025. The surge was driven by significant improvements in revenue and operational efficiency, underscoring the company’s strong trajectory in the aviation services and logistics sector.

According to its interim financial statement filed with the Nigerian Exchange on Thursday, group revenue rose by 102.06%, from ₦16 billion in H1 2024 to ₦32.33 billion in H1 2025. Gross profit more than doubled by 117.7%, climbing to ₦19.16 billion, compared to ₦8.80 billion in the same period last year.

Operating profit posted a robust increase of 126.9%, rising from ₦5.13 billion in H1 2024 to ₦11.64 billion in H1 2025, while profit before tax surged by 148.2%, hitting ₦11.79 billion, up from ₦4.75 billion. Earnings per share (EPS) also climbed to ₦4.55, from ₦1.71 in the previous year.

Improved Margins and Stronger Returns

Profit margins improved significantly year-on-year:

• Gross profit margin increased from 55% to 59.26%

• Operating profit margin rose from 32.06% to 36%

• Pre-tax profit margin climbed from 29.7% to 36.5%

Return on assets (ROA) improved from 7.09% to 20.14%, while return on equity (ROE) surged from 16.59% to 51.09%, indicating strengthened asset productivity and shareholder value.

These half-year results set NAHCO on a solid path to outperform its 2024 full-year performance, where profit before tax stood at ₦18.70 billion, more than double the ₦8.68 billion recorded in 2023. Revenue rose by 88.5%, from ₦28.40 billion in 2023 to ₦53.54 billion in 2024, while gross profit increased from ₦15 billion to ₦33.08 billion.

Operating profit for the 2024 fiscal year rose 123.9% to ₦19.84 billion, up from ₦8.86 billion, reflecting NAHCO’s commitment to improving performance across its business lines.

Dividend Growth and Strategic Vision

NAHCO’s performance in 2024 translated to a 134% increase in dividend payouts, with ₦11.58 billion declared as cash dividends—equivalent to ₦5.94 per share, up from ₦4.95 billion distributed in 2023.

Speaking on the company’s outlook, Chairman of NAHCO, Seinde Fadeni, reaffirmed the group’s commitment to a five-year strategic blueprint aimed at pushing revenue beyond ₦300 billion.

“We are implementing a growth strategy that will enhance our core business while expanding into new sectors. Our goal is to sustain this momentum and meet our ₦300bn revenue target,” Fadeni stated.

He revealed that NAHCO is actively investing in equipment upgrades, staff welfare, and digital transformation, adding that salaries had been increased by 50%, and that the company is deploying Oracle ERP and HCM systems to bolster operational efficiency.

Fadeni also highlighted plans to deepen diversification by entering the hospitality sector and expanding the group’s commodities export business, alongside a major re-fleeting initiative aimed at replacing all ageing equipment by December 2025.

Infrastructure Expansion and Sustainability Agenda

Group Managing Director, Olumuyiwa Olumekun, emphasized NAHCO’s expansion into value-added logistics services with the launch of the NAHCO Export Packaging and Processing Centre in Lagos. He described the facility as the first of its kind in Nigeria, strategically designed to enhance the competitiveness of Nigerian products in the global export market.

“The export centre is a strategic move to position local products for competitiveness globally,” Olumekun noted.

He added that the group’s operations in Lagos, Abuja, and Kano had recently undergone successful recertification, further affirming NAHCO’s operational compliance and excellence.

Looking ahead, NAHCO will focus on four key strategic pillars:

1. Equipment Upgrade

2. Digitisation

3. Environmental, Social, and Governance (ESG) compliance

4. Business Diversification

“We are transforming from a ground handling company into a diversified logistics group, committed to delivering value to shareholders,” Olumekun said.

He also extended appreciation to shareholders, staff, and customers for their continued trust and support, assuring them of an even stronger performance in the coming quarters.