Presco Plc released its financial report for the third quarter of 2024, recording a pre-tax profit of N16.6 billion, an increase from N10.8 billion in the same quarter of 2023.
This 53.49% year-over-year increase brings the cumulative pre-tax profit for the nine-month period ending September 30, 2024, to N67 billion.
The company’s Q3 revenue rose by 40.82% year-over-year, reaching N40.5 billion compared to N28.7 billion in 2023.
Gross profit also increased by 57.80%, and earnings per share rose from N8.39 in Q3 2023 to N12.89 in Q3 2024.
Key Highlights (Q3 2024 vs. Q3 2023)
Revenue: N40.5 billion, +40.82% YoY
Cost of Sales: N13.6 billion, +16.18% YoY
Gross Profit: N26.8 billion, +57.80% YoY
Finance Cost: N4 billion, +99.59% YoY
Finance Income: N193.4 million, +822.42% YoY
Pre-tax Profit: N16.6 billion, +53.49% YoY
Post-tax Profit: N12.8 billion, +53.62% YoY
Earnings Per Share: N12.89, +53.64% YoY
Total Assets: N207.3 billion, +21.75% YoY
Commentary
Presco Plc demonstrated growth in Q3 2024, with revenue surging 40.82% year-over-year to N40.5 billion, up from N28.7 billion in 2023.The company’s cost of sales also increased, reaching N13.6 billion—a 16.18% rise from the prior year—yet gross profit still grew strongly, climbing 57.80% to N26.8 billion.Finance costs nearly doubled, increasing from N2 billion in Q3 2023 to N4 billion in Q3 2024, reflecting a 99.59% year-over-year rise. Finance income rose significantly as well, by 822.42% to N193.4 million.The pre-tax profit for Q3 reached N16.6 billion, marking a 53.49% year-over-year increase, while cumulative pre-tax profit for the nine-month period totalled N67 billion.Post-tax profit increased by 53.62%, reaching N12.8 billion, and earnings per share rose to N12.89 from N8.39 in the previous year.Asset Position
Presco Plc’s total assets expanded by 21.75% year-over-year, reaching N207.3 billion as of September 30, 2024, up from N170.3 billion in the previous year.The bulk of non-current assets consisted of property, plant, and equipment, valued at N118.5 billion.At the same time, current assets, primarily consisting of trade receivables and biological assets, amounted to N85.8 billion, providing support for the company’s short-term liquidity.Cash Flow Overview
The company’s cash flow from operating activities increased by 94.94% year-over-year to N75.6 billion, due to higher inflows from trade and other payables.Cash used in investing activities was N22.6 billion, mainly directed toward acquiring property, plant, and equipment.Financing activities resulted in a N36 billion cash outflow, leaving cash and cash equivalents at N11.4 billion by the end of the period.
