Nigerian Aviation Handling Company (NAHCO) Plc has positioned itself to meet its N300 billion revenue target by 2029, following an 88.5 percent increase in total revenue from N28.40 billion in 2023 to N53.54 billion in 2024, driven by its strategic business model and ability to capitalise on emerging opportunities.
With increased top-line efficiency, gross profit doubled by 120.53 per cent to N33.08 billion in 2024 as against N15 billion in 2023. Operating profit also jumped by 123.93 per cent from N8.86 billion to N19.84 billion, underscoring the fact that the group’s performance was driven mainly by core business operations.
The latest audited report and accounts of NAHCO, for the year ended December 31, 2024, released at the Nigerian Exchange (NGX), showed that the leading aviation ground handling company recorded well-rounded performance with both actual and underlying performance indicators at their highest levels.
The company is increasing dividend payout to shareholders by 134 per cent, riding on the back of record revenue and profitability.
Profit before tax doubled by 115.4 per cent to N18.70 billion in 2024 as against N8.68 billion in 2023. After taxes, 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, providing headroom for a similar percentage increase in dividend payouts without undermining the group’s recent dividend payout trend.
The Seinde Fadeni-led board of directors has recommended distribution of N11.58 billion as cash dividends to shareholders for the 2024 business year, more than double of N4.95 billion distributed for the 2023 business year.
Read also: African airlines see 6.7% increase in passenger demand
Shareholders, who are expected to approve the dividend recommendation at their forthcoming annual general meeting, will receive a dividend per share of N5.94 for the 2024 business year compared with N2.54 paid for the 2023 business year, representing an increase of 133.9 per cent.
The dividend outlook underlined NAHCO as one of the most investor-friendly and most-sought after stocks in the Nigerian capital market. With current dividend yield in double digits, NAHCO has recorded capital gain of 175 per cent over the past 15 months, underscoring the strong positive investors’ sentiments that have shaped trading on the company’s shares. NAHCO’s share price, which started 2024 at N25.40 per share, opened last week at N69.90 per share, representing capital gain of 175.2 per cent.
Well-grounded
The positive operational performance over the years has continued to strengthen the group’s capacity for long-term sustainability. Total assets rode on the back of retained earnings to expand to N46.95 billion in 2024, as against N27.31 billion in 2023. Shareholders’ funds rose by 65.5 per cent from N12.13 billion to N20.07 billion. Retained earnings had grown by 84.1 per cent from N9.40 billion in 2023 to N17.31 billion in 2024.
Underlying performance ratios showed that the actual face figures were grounded in expansive business growth and improvements in operating efficiency. All indices were positive in line with the actual face figures, showing a congruence that further strengthened the overall outlook of the group.
Gross profit margin, which measures top-line efficiency, improved from 52.82 per cent in 2023 to 61.79 per cent in 2024. Operating profit margin increased from 31.2 per cent in 2023 to 37.06 per cent. Pre-tax profit margin, which indicates the average profitability per unit of activity, expanded by nearly 500 basis points from 30.56 per cent in 2023 to 34.93 per cent in 2024.
Return on total assets (ROA) increased from 31.8 per cent in 2023 to 39.8 per cent in 2024, underlining the improvement in asset utilisation and efficiency. Return on equity (ROE) rose by more than 18 percentage points from 45.7 per cent in 2023 to 64.1 per cent in 2024, showing the substantial investors’ value creation potential of the group.
Broad and Sturdy
Segmental analysis showed a broad-based growth, powered by the engrained efficiency in overall business management. All the businesses of the group are growing and profitable, with its largest and best-known ground handling business providing a comfortable lead.
Total revenue from the ground handling business doubled by 105 per cent from N17.86 billion in 2023 to N36.60 billion in 2024. Segmental headline profit jumped by 146.1 per cent from N9.20 billion to N22.64 billion. Cargo business income rose by 38.7 per cent from N7.18 billion to N9.96 billion, with accompanying profit increasing by 59 per cent from N3.47 billion to N5.52 billion. Revenue from other businesses doubled by 108 per cent from N3.36 billion to N6.98 billion while related headline profit grew by 107 per cent from N1.77 billion in 2023 to N3.67 billion in 2024.
The NAHCO Group is a diversified conglomerate with interests in aviation ground handling, airport management, aviation training, free trade zone, 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.
The latest results underscored the continuous brand dominance in the aviation services industry. NAHCO, in the past four months, has signed not less than five new ground handling contracts and renewals with many leading global airlines, while expanding its specialty.
In February 2025, NAHCO, in a first of its kind in the aviation industry, received Federal Government’s approval to handle shipments with radioactive contents in its facilities at the airports. The approval, jointly conveyed by the Nigerian Civil Aviation Authority (NCAA) and the Nigerian Nuclear Regulatory Authority (NNRA), directed “all importers and exporters of radioactive material” to “contact NAHCO for import and export of radioactive material”.
Olumuyiwa Olumekun, Group managing director, Nigerian Aviation Handling Company (Nahco aviance) Plc, said the approval was based on thorough assessment of the group’s facilities, including equipment and human resources, as well as the group’s compliance with global protocols and processes.
According to him, the company has put in place clear, diligent and thorough processes that would ensure 100 per cent compliance to procedures by highly trained company professionals as they carry out the specialised functions.
Prince Saheed Lasisi, Group executive director, Commercial and Business Development, NAHCO Plc, highlighted that the latest approval was a good development for importers and exporters who have been having challenges exporting and importing shipments with radioactive contents.
