By Alex C
The country’s transport and cargo business appears to be booming as Nigeria Aviation Handling Company plc’s (Nahco Aviance) first-half profit rose by 19.24 percent, analysis of its financial statement shows.
For the first six months through June 2014, the company’s net income increased by 19.24 percent to N381.37 million, from N319.83 million in the same period of the corresponding year (HY) 2013. Net margin, a measure of profitability and efficiency, increased to 9.95 percent in HY 2014 compared with 8.34 percent as at HY 2013.
It will be recalled that the company had reached agreement with the Nigeria Customs Service to extend its hours of operation at the Lagos airport cargo complex. This is to ensure prompt facilitation of goods that would reduce stockpiling of cargo at the tarmac and bulk breaking areas and will lead to maximisation of cargo potentials, thus expediting timely delivery to customers.
The company’s cost of sale slid by 7.38 percent to N2.47 billion in H1 2014 as against N2.30 billion as at H1 2013. Gross margin declined to 36.43 percent in HY 2014 compared with 39.63 percent as at HY 2013, while gross profit dipped by a single digit 6.27 percent to N1.42 billion in 2014 from N1.51 billion as at H1 2013, which means the company the needs to improve on the utilization of director material attributable to projects.
Analysts say the performance of nacho is an important part of the Nigeria business environment as the provision of transport system is one of the catalysts of economic growth and development. The resilient half year performance of the company shows firms can thrive amid environmental unpredictability.
Nahco Aviance is a Nigerian diversified enterprise with interests in aviation cargo, aircraft handling, passenger facilitation, crew transportation and aviation training. The company currently serves more than 35 airlines at seven airports across Nigeria. It handles about 70 percent of domestic and foreign airlines operating in Nigeria.