SCOA revenue drops by 47%
SCOA Nigeria Plc has reported a revenue of N2.17bn for the fourth quarter of 2024, reflecting a 74 per cent decline from the N8.22bn recorded in the same period of 2023.
The company’s unaudited financial statement for the period ended December 31, 2024, revealed that the drop in revenue significantly impacted its gross profit, resulting in a loss of N891.23m compared to a gross profit of N551.64m in the corresponding period of the previous year.
The cost of sales also decreased to N3.06bn from N7.67bn, representing a 60 per cent decline. Despite this reduction, the decline in revenue outweighed the cost savings, contributing to the loss recorded during the period.
However, the company reported a profit after tax of N183.39m, a 100 per cent decrease from N815.06m reported in the same period of 2023. The profit was primarily driven by other income, which rose to N367.69m from N235.07m, representing a 56 per cent increase.
SCOA Nigeria also recorded a surge in financial charges, which increased by 33 per cent to N599.95m from N378.52m in the fourth quarter of 2023. This rise in financial costs impacted the profit before tax, which dropped to N254.79m from N829.24m, reflecting a 109 per cent decrease.
The company’s total comprehensive income stood at N183.39m, a significant decline from N815.06m reported in the same period of the previous year. Additionally, the profit attributable to owners of the company fell by 100 per cent to N178.95m from N636.59m in 2023.
On the balance sheet side, its total assets declined slightly to N14.90bn from N15.53bn reported at the end of 2023. Cash and cash equivalents also dropped by 34 per cent to N3.65bn from N5.52bn.
Meanwhile, the company’s total liabilities rose to N14.32bn from N13.41bn, driven by an increase in current financial liabilities and trade payables. This contributed to a negative working capital of N1.89bn, widening from a deficit of N512.82m in 2023.
SCOA Nigeria’s net assets also declined to N577.81m from N2.12bn, reflecting a 73 per cent drop, which it attributed to challenging market conditions and increased financial charges.
Despite the decrease in revenue and profitability, the company expressed optimism about its initiatives aimed at improving efficiency and profitability in the coming quarters.
