The Nigerian Aviation Handling Company (NAHCO) has posted its strongest financial performance yet, doubling its pre-tax profit to N18.70 billion and growing revenue by 88.5 per cent to N53.54 billion in 2024, according to its newly released audited results filed on the Nigerian Exchange Limited.
Riding on this performance, the board has recommended a 134 per cent increase in dividend payout, while the company ramps up plans to achieve a five-year revenue target of N300 billion by 2029.
After taxes, NAHCO’s net profit leapt by 132 per cent from N5.54 billion to N12.86 billion. Consequently, earnings per share rose by 132 per cent from N2.84 in 2023 to N6.60 in 2024.
The Board of Directors, led by Dr. Seinde Fadeni, recommended the distribution of N11.58 billion as cash dividends to shareholders for the 2024 business year, more than double the N4.95 billion distributed for 2023, which comes down to N5.94 per share.
In a statement on Sunday, the company said that its financial performance has placed it in a good position to achieve its five-year growth target of N300 billion by 2029.
‘With the 2024 total revenue of N53.54 billion already 39 per cent above the year’s projected revenue of N38.49 billion, the company has started its new five-year growth plan with great speed’, part of the statement read.
The board of the company unveiled a five-year growth plan during an interactive session with the investing public at the Nigerian Exchange in December 2024.
Under the five-year strategic business plan, turnover was projected to rise successively to N38.49bn in 2024, N71.12bn in 2025, N101.93 billion in 2026, N146.07 billion in 2027, N209.34 billion in 2028 and N300billion by 2029.
A breakdown of the N300bn revenue target indicated that the group expected to generate N120bn from the main ground handling business over the five years, N40bn from cargo handling, and N36bn from NAHCO Logistics Services, while NAHCO Free Zone, NAHCO Commodities, NAHCO Travel & Hospitality and NAHCO Aviation Academy would contribute N15 billion, N80 billion, N7 billion and N2 billion, respectively.
Fadeni said that the company has the potential to achieve its target of ₦300 billion revenue in the next five years given ongoing investments and numerous emerging opportunities.
According to him, the new five-year growth plan would strengthen existing businesses and open up new opportunities, with key growth drivers aimed at further diversifying the group’s businesses within and outside Nigeria.
For Fadeni, while recent dividends and capital gains rank highest in the history of the company and among the highest in the Nigerian capital market, this is the beginning of bumper returns to investors.
‘As a company that has consistently paid high dividends over the years, NAHCO Plc will continue to seek higher dividends for its shareholders. To do that, the company has to increase profitability. To increase profitability, the company is making huge investments in manpower and equipment’, Fadeni said.
The Group Executive Director (International Business and Corporate Services), Dr. Sola Obabori outlined that the company would sustain progressive growth in sales and profitability over the next five years.
‘We are embarking on a five-year transformation journey to build a new NAHCO, centred around four key pillars: accelerate business growth, differentiate with operational excellence, lead with digital and deliver a transformed people and culture’, Obabori said.
He assured that the group is committed to achieving specific performance goals by 2029 while simultaneously expanding its service offerings.
The NAHCO Group is a conglomerate with interests in aviation ground handling, airport management, aviation training, free trade zones, commodities export, and energy solutions. In addition to its main ground handling business and cargo handling business, other subsidiaries included Mainland Cargo Options Limited, Nahco Free Trade Zone Limited, NAHCO Power Solutions Limited, NAHCO Management Services, NAHCO Travels & Hospitality Limited, NAHCO Aviation Academy and NAHCO Commodities Limited.
