Ardova Reports 6% Increase in Revenue to N192.47bn
Kayode Tokede
Ardova Plc has announced N192.47billion revenue for the year ended December 31, 2021, representing an increase of nearly 6 per cent over N181.66 billion reported the prior year.
The company, thus, closed the 2021 financial year with N1.54 billion profit as against N2.06 billion reported in 2020 full year result and accounts.
The company also announced first quarter (Q1) ended March 31, 2022 unaudited result and accounts that showed significant improvements as yields from investments made in 2021 contribute to growth in revenue, sales volume, and profits.
As revenue grew by 21.4 per cent to N50.6billion in Q1 2022 from N41.65billion reported in Q1 2021, Profit before tax appreciated by 37 per cent to N1.60 billion in Q1 2022 from N1.17billion reported in Q1 2021.
Commenting on the 2021 audited financial statement, the Chief Executive Officer, Ardova, Mr. Olumide Adeosun in a statement said, “2021 proved to be an eventful year for Ardova, as it marked the completion of our stabilization strategy, with the consequent strengthened balance sheet providing the leverage for the inorganic expansion required to evolve Ardova into an integrated energy company.
He added, “In the course of the year, we concluded a landmark capital raise of N25.3 billion in an over-subscribed bond that was the largest by any downstream company in Nigeria, and an indication of investor confidence in Ardova’s future.
“We also concluded the acquisition of Enyo Retail and Supply Limited (ERSL) in a deal that makes our retail network the largest in Nigeria. The company also made further investments in cleaner energy infrastructure, as it commenced onsite work on its 20,000 metric tonne Liquefied Petroleum Gas (LPG) storage facility in Ijora. Ardova won a license to operate an Oil Marginal Field following a successful bid in the 2020 round, thereby increasing the company’s potential for foreign currency revenue generation.”
The Chief Financial Officer, Ardova, Moshood Olajide in the statement said, “The company continued to deliver on profits, as we ended Q1 with a profit-after-tax position of N1.6billion, which is a growth of 37per cent compared to the same period in 2021.
“We also continued to increase our capital expenditure, principally in investments that facilitate our strategic expansion, and we expect to see returns within a three-year window.”
Olajide further noted that Ardova’s Q1 2022 results showcased resilience, “as We sustained competitive growth by increasing revenue by 21per cent YoY (Group: 50per cent YoY), with the resulting profit of N1.6billion putting us in a 37per cent growth YoY position.
“As a group, we were negatively impacted by our subsidiaries, Axles & Cartage Limited, which faced operational environment issues and the newly acquired Enyo, which is presently undergoing a transformation process to drive operational efficiency and profitability. When subsidiaries are taken into consideration the group loss amounts to N3.8 billion.”
Adeosun stated that “the loss experienced in 2021 are an expected reflection of the strategic inorganic growth programme of the company, and do not affect the viability of the company, especially as some of the immediate benefits of this programme were illustrated by the better year on year performance recorded in our Q1 2022 results.”
