ABC Transport Pre-tax Profit Decline

ABC Transport pre-tax profit decline by 32.20% from N84.6 million in 2023. It has reported N57.3 million in second-quarter 2024 profits. Revenue increased 71.05% from N1.4 billion in 2023, but direct costs jumped 73.44%, stifling profitability. Direct costs increased, resulting in a 69.36% drop in net income in Q2 2024.

The company’s Q2 2024 direct costs rose due to rising petroleum prices.

Key highlights:

Revenue:                                       N2.4 billion, 71.05% YoY

Direct cost:                                   N1.9 billion, 73.44% YoY

Gross profit:                                 N481.6 million, 61.90% YoY

Administrative expenses           N355.2 million, 30.36% YoY

Finance cost:                                N224 million, 27.32% YoY

Pre-tax profit:                              N57.36 million, -32.20% YoY

Net Income:                                 N15.5 million, -69.36% YoY

Earnings per share:                    N0.006,           -69.34% YoY

The company’s Q2 financial statement for the period ending June 30, 2024 showed considerable revenue from public transit.

In Q2 2024, the company’s direct costs rose due to the price of petroleum products, lowering revenue earnings.

According to the National Bureau of Statistics, the average price of petrol in May 2024 was N769.62 per litre, up 223.21% from N238.11 in 2023.

Gross profit rose 61.90% to N481.6 million, but administrative expenses of N355.2 million hurt net income.

ABC’s Q2 2024 net income fell 69.36% to N15.5 million from N50.6 million.

The company’s earnings per share declined 69.34% YoY, reducing its profit per outstanding common stock.

Nigerian stock exchanges trade ABC Transport at N0.80 per share.

Frequently Asked Questions On ABC Transport Pre-tax Profit Decline 32.20% in 2024

Q: How did ABC Transport perform in Q2 2024?

A: ABC Transport reported a decline in pre-tax profit of 32.20% compared to the previous year.

Q: What caused the decline in profit?

A: The increase in direct costs, primarily due to rising petrol prices, was the main factor affecting profitability.

Q: Did ABC Transport’s revenue increase?

A: Yes, the company’s revenue increased by 71.05% compared to the previous year.

Q: How did ABC Transport’s gross profit perform?

A: Gross profit increased by 61.90% year-on-year.

Q: What impacted ABC Transport’s net income?

A: Net income declined by 69.36% due to increased direct costs and administrative expenses.

Q: How did the rising cost of fuel affect ABC Transport?

A: The increase in petrol prices led to higher direct costs, which negatively impacted the company’s profitability.

Q: How has ABC Transport’s share price been performing?

A: ABC Transport’s share price is currently trading at N0.80 per share on the Nigerian Stock Exchange.

Q: How did ABC Transport’s earnings per share change?

A: Earnings per share declined by 69.34% year-on-year.