CONSTRUCTION giant, Julius Berger Plc in its financial statements for the year ended December 2017 has indicated its return to profitability having posted a profit after tax of N2.5 billion compared to a loss after tax of N2.3 billion made in 2016.
According to the result submitted to the Nigerian Stock Exchange (NSE) on Friday, the revenue of the company increased from N138 billion in 2016 to N141 billion in 2017, while gross profit increased from N44 billion in 2016 to N54 billion in 2017, as the company recorded N3.7 billion profit before tax in 2017 compared to an N1.4 billion loss in 2016.
The board, therefore, recommended one naira dividend per share of 50 kobo only, representing a total payout of N330m, for consideration and approval by shareholders at the annual general meeting slated for June 21, 2018, in Abuja.
Further analysis of the company’s result indicated that cost of sales jumped to N97.591 billion from N84.767 billion; leaving gross profit at N44.298 billion, down from previous N54.226 billion.
Marketing expenses dropped from N53.327 million to N47.851 million; just as administrative expenses dropped slightly from N37.38 billion to N35.564 billion, resulting in operating profit of N8.686 billion, down by N8.106 billion or 48.27 per cent from N17.792 billion in the 2016 full year.
Lagos and the land use charge controversy
Other gains improved to N4.076 billion from N1.443 billion, representing an N2.633 billion or 18246 per cent; earned mainly from the N3.215 billion profit from sale of property, plant and equipment, compared to the previous N4.495 billion. Net foreign exchange gains stood at N185.943 million from the N5.704 billion loss; ahead of the N674.93 million sundry income, as against the N2.652 billion.
Finance cost rose to N6.9 billion from N5.784 billion, out of which interest and overdraft facilities amounted to N5.411 billion from N3.961 billion; interest on loan dropped slightly from N1.498 billion to N1.327 billion; while other finance charges fell from N324.52 million to N161.176 million.
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