Julius Berger published its 2024 second-quarter results, revealing a pre-tax profit of N8.3 billion.
This represents a 12.08% year-over-year rise from a profit of N7.4 billion reported in 2023.
Revenue also climbed by 10.58% year-over-year to N132.8 billion compared to the same period the previous year.
This decline dragged down the earnings per share of the company by 67.50%, from N2.80 year-over-year in 2023 to N0.91 in 2024.
Key highlights:
Revenue: N132.8 billion, 10.58% YoY
Cost of sales: N115.0 billion, 20.05% YoY
Gross profit: N17.8 billion, -26.64% YoY
Administrative Expenses: N16.8 billion, 15.23% YoY
Finance costs: N801.8 million, -44.85% YoY
Pre-tax profit: N8.3 billion, 12.08% YoY
Total comprehensive Income: N17.3 billion, -41.62% YoY
Earnings per share: N0.91, -67.50% YoY
Commentary:
Julius Berger’s revenue climbed by 10.58% year-over-year from N120.1 billion in Q2 of 2023 to N132.9 billion in 2024.
However, the cost of sales reported by the company for Q2 of 2024 increased by 20.25% year-over-year, stifling the impact of revenue and slashing gross profit.
The gross profit on the income statement of the company declined by 26.64% year-over-year from N24.3 billion in Q2 of 2023 to N17.8 billion in 2024.
Although finance costs surged by 44.85% year-over-year, influenced more by an increase in administrative costs, the company managed to earn a pre-tax profit of 12.08% year-over-year in Q2 of 2024.
Pre-tax profit climbed from N7.4 billion in Q2 of 2023 to N8.3 billion in Q2 of 2024, while total income sank due to tax-related expenses.
Also, the earnings per share of the company plunged by 67.50% year-over-year, from N2.80 the previous year to N0.91 in Q2 of 2024.
Julius Berger, at a share price of N97.00, is strongly on the buyside but is currently undergoing a shallow retracement.