Julius Berger Q1 Profit Rises By 31.8%, On Faster Growth In Costs

Julius Berger Nigeria Plc, last week reported revenue of N106.446bn in the first three months of the year 2022, up by N35.244bn or 49.49% better than the N71.201bn in the corresponding period of 2021, faster than the 31.8% growth in net profit, after cost of sales soared by N33.051bn or 56.81% from N58.176bn to N91.228bn. Gross profit, therefore, stood at N15.217bn from N13.024bn.

A breakdown of the numbers by geographical markets showed that revenue from Nigerian government clients stood at N81.528bn from N54.577bn in the first three months of last year; while earnings N23.58bn private sector clients in the country, up from N13.478bn. The company also received N1.337bn from private sector clients in Europe, down from N3.145bn. These brought total revenue from the government in 2022Q1 to N81.528bn from N54.577bn; while earning N24.917bn from private sector clients from both regions, an increase from N16.624bn

Marketing expenses dropped significantly from N84.696m to N24.156m; while administrative expenses increased from N9.089bn to N10.508bn; impairment loss on trade and tax receivables stood at N33.611m from nil in the prior Q1. This resulted in an operating profit of N4.65bn from N3.85bn. a further breakdown showed that revenue from civil works down for the governments increased from N35.541bn to N53.773bn; building works, N23.848bn from N14.074bn; services, N3.906bn from N4.961bn. From private sector clients, civil works fetched Julius Berger Nigeria raked in N11.39bn from N10.825bn; building works, N10.221bn from N4.286bn; services, N3.305bn from N1.511bn.

Investment income soared from N103.361m to N719.17m; other gains and losses improved from N1.297bn to N1.808bn, boosted by the net foreign exchange gains of N1.708bn from N734.905m; foreign exchange acquisition loss dropped marginally to N1.116bn from N1.161bn. Finance costs dropped from N635.763m to N591.142m, the bulk of which were the N189.768m paid in interest on overdraft, which dropped from N306.848m, as well as other finance charges amounting to N196.728m, up from N174.931m. Profit before tax for the period rose to N5.47bn from N3.454bn. Income tax expense took a leap from N627.615m to N1.743bn; following which profit after tax stood at N3.726bn from N2.827bn.

A disaggregation of the profit showed that civil works done for the government contributed N2.349bn, from N1.922bn; building works, N1.042bn from N761.136n; while profit from services fell from N268.314m to N170.675m. Civil works business done for private sector clients yielded a Q1 profit of N497.673m, down from N585.472m; building works, N446.616m from N231.839m; and services grew to N144.428m from N81.728m.

Exchange difference on the translation of foreign operations also rose significantly from N384.326m to N2.118bn; leaving a total comprehensive income of N1.733bn, down from N2.363bn, translating to earnings per share of N1.08, down from N1.51 in the corresponding period of last year.