The board of Nigerian Aviation Handling Company (NAHCO) Plc has assured shareholders that the five-year growth strategy being implemented by the company would drive its turnover above N300 billion within the next five years.
At the annual general meeting held at the weekend, the board said the company has continued to strengthen its position as the market leader in aviation ground handling while diversifying into new opportunities.
The assurance came as shareholders approved the payment of N11.58 billion as cash dividends for the 2024 business year, representing a dividend per share of N5.94. The latest dividend represented a 134 per cent increase on N4.95 billion paid for the 2023 business year.
Seinde Oladapo Fadeni, chairman, Nigerian Aviation Handling Company (NAHCO) Plc, said the board and management are completely focused on implementing the company’s five-year strategic blueprint, which would drive the next phase of the growth of the group.
According to him, the company is undergoing a transformative change that has seen improvement in operating strategy, equipment, staff welfare and management and significant investments in technical know-hows and new opportunities.
He noted that the 2024 performance signposted what the future holds for shareholders of the company, assuring that the group is in position to sustain impressive growths and achieve its target of N300 billion turnover.
“The year was one of tremendous progress, marked by significant achievements and a renewed sense of purpose across all facets of our operations,” Fadeni said.
The audited report and accounts of NAHCO for the year ended December 31, 2024 showed that profit before tax doubled by 115.4 per cent to N18.70 billion in 2024 as against N8.68 billion in 2023. Total revenue rose by 88.5 per cent from N28.40 billion in 2023 to N53.54 billion in 2024.
With increased top-line efficiency, gross profit increased 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.
Fadeni said NAHCO has demonstrated remarkable resilience despite challenges in the operating environment, adding that the company has been positioned for an even more rewarding future.
He said the company plans to deepen its diversification by building a hotel while also growing its commodities export business.
“The company continues to adapt and push forward, maintaining operational efficiency and striving to uphold its standard of service excellence and increased shareholders’ value.
“The board understands the important place of technology in modern business and is committing funds into providing the company with next generation technology to enable it run its processes smoothly and efficiently. The company is currently implementing Oracle ERP and HCM systems, a pivotal initiative designed to enhance NAHCO’s efficiency and digital transformation.
“In the last one year, the company has been re-fleeting its equipment. We have a target to replace all aging equipment by December 2025,” Fadeni said.
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He pointed out that the recent 50 per cent increase in salary, along with the existing annual profit-sharing initiative and semi-annual performance bonus scheme reflected the company’s commitment to staff welfare.
He said the Industry Champions Award given to the company by the industry regulator, Nigeria Civil Aviation Authority (NCAA), was indicative of what NAHCO stands for in the aviation industry.
He said: “We have emerged overtime as the face of resilience in the aviation industry. We support good causes. We represent the best in Nigeria’s aviation in corporate governance, in staff welfare and in profitability”.
Olumuyiwa Olumekun, group managing director, NAHCO, highlighted some operational achievements in the past year to include the recertification of the company in three major stations of Lagos, Abuja and Kano and the commissioning of a new NAHCO Export Packaging and Processing Centre, Lagos.
According to him, the new centre, the first of its kind in Nigeria, was a strategic move to enhance the competitiveness of Nigerian products on the global stage while creating more jobs for Nigerians.
“We have embarked on a journey that not only strengthens our foothold in the global market but also contributes to the economic development of Nigeria,” Olumekun said.
He outlined that the group would focus on four areas of sustained growth, equipment re-fleeting, digitization and environmental social governance (ESG) to ensure better performance in the period ahead.
He commended shareholders, customers and staff of the company for their support and commitments, which have continued to enable the group to perform better every year.
Sunny Nwosu, founder, Independent Shareholders Association of Nigeria (ISAN), said he attached a great deal of importance to NAHCO because of the performance of the company across all key indicators. He urged the company to continue on its growth trajectory.
President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Faruk Umar said NAHCO has been very impressive in terms of operational performance and returns.
He assured that shareholders would continue to support the company in the quest for further growth and improved returns.
