NCR reports N2.2bn loss

NCR Nigeria Plc has reported a loss of N2.2bn for the financial year ending 31 December 2024, marking a decline from the N738.9m loss recorded in 2023.

The company’s overall performance in 2024 was adversely impacted by a decrease in revenue and an increase in the cost of sales.

In the company’s financial statement on the Nigeria Exchange Limited on Wednesday, NCR Nigeria’s total revenue for the year fell by 27 per cent, dropping from N2.93bn in 2023 to N2.15bn in 2024. Its cost of sales decreased by 23 per cent, from N2.03bn in 2023 to N1.56bn in 2024. However, this reduction did not fully offset the revenue decline, leading to a drop in gross profit of 35 per cent, from N907.1m in 2023 to N593.5m in 2024.

Its profit after tax worsened, from a loss of N738.9m in 2023 to a loss of N2.2bn in 2024, which was attributed to a combination of factors, including lower revenue and increased operational expenses, which heavily impacted the company’s profitability.

Total assets of NCR Nigeria also experienced a decline of 19 per cent, falling from N5.46bn in 2023 to N4.42bn in 2024, primarily caused by a decrease in cash and cash equivalents, which dropped by 58 per cent, from N1.24bn in 2023 to N522.6m in 2024.

The company’s retained loss rose sharply to N4.75bn as of 31 December 2024, up from N2.55bn the previous year. This increasing retained loss is a result of the continued operational challenges and the significant financial loss for the year.

Trade and other payables increased by 25 per cent, from N5.18bn in 2023 to N6.49bn in 2024, indicating that NCR Nigeria may be facing liquidity challenges and has been unable to settle its outstanding obligations efficiently.

The company’s earnings per share further declined, moving from a negative N7.04 in 2023 to N20.35 per share in 2024. This represents a deterioration in its ability to generate profits for its shareholders.