Construction and infrastructure development company, Julius Berger Nigeria Plc, has reported a 65 per cent decline in its profit after tax for the first quarter ended March 31, 2025, amounting to N3.56bn compared to N10.05bn posted in the corresponding period of 2024.
The construction giant disclosed this in its unaudited consolidated financial statement released on the Nigerian Exchange Limited recently, attributing the steep drop in profitability to a surge in administrative expenses and a decline in other income.
Revenue for the period rose by 62.8 per cent to N180.51bn in Q1 2025, up from N110.88bn in the same quarter of the previous year. Despite the growth in turnover, the cost of sales increased sharply to N153.1bn from N89.91bn, leading to a moderate gross profit of N27.41bn, compared to N20.97bn in Q1 2024.
Operating profit fell by 76.5 per cent to N3.12bn in the quarter under review, from N13.29bn in the corresponding period, as the company’s administrative expenses surged to N22.67bn, representing a 46.4 per cent rise from N15.48bn a year earlier. Marketing expenses also rose slightly to N127m, while impairment on trade and tax receivables was recorded at N1.56bn.
Other gains and losses declined significantly to N75.2m in Q1 2025 from N9.69bn in the same period last year, reflecting a major drop in non-operating income, which had previously bolstered the company’s bottom line.
Further analysis of the result showed that investment income dipped to N3.75bn from N4.54bn, while finance costs stood at N951.36m, down slightly from N1.09bn in the corresponding period.
Profit before tax declined by 64.7 per cent to N5.92bn from N16.75bn, and after accounting for income tax expenses of N2.35bn, Julius Berger posted a net profit of N3.56bn.
Earnings per share correspondingly fell to N2.19 from N6.26 recorded in the previous year, indicating reduced returns for shareholders in the short term.
Despite the profit drop, Julius Berger’s balance sheet remains strong, with total assets rising to N1.05tn in Q1 2025 from N767.94bn in Q1 2024. Non-current assets rose to N483.13bn from N298.20bn, while current assets stood at N570.31bn as against N468.56bn in the same period last year.
The company’s equity increased to N354.39bn from N148.2bn in Q1 2024, largely due to revaluation gains reflected in the other comprehensive income. Julius Berger recorded a total comprehensive income of N8.67bn for the quarter, although this was significantly lower than the N41.77bn reported in Q1 2024.
