Newrest ASL Nigeria, a leading airline catering company, on Thursday became the first to file its audited account for the full year ended December 31, 2018, showing that profit grew significantly faster than earnings.
The directors have therefore recommended a dividend of 20 kobo from its earnings per share of 235 kobo, up from the previous 68 kobo for approval by shareholders at its annual general meeting of Thursday, May 16, 2019. While qualification date for the dividend is slated for April 26, closure of register for the purpose is slated from April 29 to May 3, and payment date, May 17.
Revenue for the period rose by 38% to N5.425bn, from N3.92bn in the previous full-year, cost of sales increased to N1.867bn from N1.305bn; leaving gross profit at N3.558bn, up from N2.614bn.
A breakdown of the revenue by segment showed that its Lagos inflight catering business remained the honey-pot for the group, contributing N3.396bn, out of which N1.147bn went into costs, leaving N2.248bn as segment profit. It was followed by N1.142bn earned from its Abuja operations at the cost of N397.907m, resulting in N745.058m profit; while Lagos airport operations fetched N743.245m at the cost of N239.214m and profit of N504.031m. Oil and gas catering garnered N12.784m, with N10.383m going into cost and leaving N2.401m profit. “Other catering” scooped N130.339m and N58.278m profit, after discounting the N72.061m operating cost for the purpose.
By location, the group earned N4.139bn from Lagos, up from N3.077bn, with inflight catering accounting for N2.754bn, as against the N.928bn reported earlier; lounges raked in N475.809m, compared to N375.12m; followed by handling valued at N367.717m, up from N253.257m, among others.
Abuja, on the other hand, contributed a total of N1.142bn, up from N754.693m, boosted by inflight catering revenue of N858.515m, as against the N565.606m recorded a year earlier; while handling recorded N191.659m, up from N130.148m, among others.
As part of corporate governance requirements, the group recorded significant revenue of approximately N1.377bn from sales to its largest customer, up from N500m in 2017; in addition to two other customers contributing more than 10% individually to its income, amounting altogether to N1.663bn, up from N898m in prior year. This means the management may have to do more marketing to increase its revenue base, while reducing its exposure to a few customers.
Administrative expenses increased to N2.26bn from N2.084bn, with salaries and wages amounting to N715.176m from N618.087m, same as prior year, just as rent, rates and lease rentals stood at N276.606m from N248.617m, and directors’ remuneration, N155,349m just as in 2017. Selling and distribution expenses climbed to N715.113m, as against the previous N582.548m, mainly management, technical and concession fees valued at N513.297m, up from N370.292m; following which operating profit for the period soared from N52.361m to N582.556m.
Investment income for the period rose slightly to N48.168m from N46.91m; and other operating income from N308.66m to N480.895m; just as “other gains” climbed significantly to N397.482m, compared to N88.806m; resulting in profit before tax of N1.509bn, up by 285% from the prior year’s N392.015m. Net profit for the period closed at N1.487bn, compared to the previous N386.676m.