The Nigerian Trade Group has reported its 2024 full-year outcomes, exhibiting a 157.62% surge in pre-tax revenue to N13.581 billion, in comparison with N5.272 billion in 2023.
Based on the corporate’s annual report and audited consolidated monetary statements for the yr ended December 31, 2024, reviewed by Nairametrics, gross earnings greater than doubled to N23.991 billion.
In recognition of this distinctive efficiency, the Board of Administrators has authorized a ultimate dividend of N4.4 billion, translating to N2.00 per share, the best dividend payout within the Group’s historical past.
The dividend can be paid to shareholders whose names seem within the Register of Members as of the shut of enterprise on Thursday, March 13, 2025.
Key highlights (2024 vs. 2023):
- Complete revenue: N23.991 billion +103.24% YoY
- Complete working bills: N15.801 billion +38.96% YoY
- Working revenue: N8.190 billion +1,791.33% YoY
- Share of profit-equity accounted investees: N5.420 billion +11.61% YoY
- Revenue after tax: N9.920 billion +88.920% YoY.
- Earnings per share: N4.2 +72.84% YoY
- Money and money equivalents: N871 million -86.76% YoY
- Complete belongings: N68.040 billion +13.70% YoY
- Retained earnings: N44.865 billion +23.15% YoY
- Complete fairness: N48.547 billion +23.02% YoY
- Internet money move from working actions: N9.033 billion +2,840.20% YoY
Firm remark
Group Chairman, Alhaji Dr. Umaru Kwairanga, acknowledged:
“These outcomes mark a pivotal second in NGX Group’s post-demutualisation development journey, reinforcing investor confidence in our long-term imaginative and prescient. The approval of a document N4.4 billion dividend demonstrates our unwavering dedication to rewarding shareholders whereas positioning NGX Group as a key driver of capital market growth.”
Group Managing Director/CEO, Mr. Temi Popoola, added:
“NGX Group’s exceptional efficiency in 2024 displays our strategic give attention to execution, operational excellence, and innovation. The 157.3% improve in revenue earlier than tax underscores the energy of our execution technique and the dedication of our crew. By leveraging expertise, increasing market knowledge options, and strengthening our partnerships, we’ve got constructed a extra resilient and diversified enterprise mannequin that positions us for sustained development.”
Insights:
Based on the corporate’s press launch, the sturdy development in whole revenue was pushed by vital will increase throughout key income streams:
- Transaction charges rose 64.0%, pushed by heightened market exercise.
- Itemizing charges elevated by 397.1%, reflecting stronger capital market participation.
- Know-how associated revenue grew by 105%, reflecting the success of the group’s digital transformation efforts
- Different charges recorded a 174.8% development, reinforcing the Group’s diversified income base.
- Treasury funding revenue climbed 45.6%, highlighting NGX Group’s efficient asset administration.
- Market knowledge income grew by 100.5%, contributing to a 102.6% rise in different revenue, which now accounts for 29.6% of gross earnings.
Expense effectivity improves, however room for optimization stays
- The entire expenses-to-gross earnings ratio improved considerably, dropping from 96% in 2023 to only over 65% in 2024.
- Whereas this displays higher price administration, there may be nonetheless room for additional optimization to boost profitability.
Shift in pre-tax composition:
- The share of revenue from equity-accounted investees grew 11.61% YoY to N5.420 billion, reflecting the continued profitability of the Group’s affiliate firms, together with CSCS.
- Nevertheless, there was a notable shift in pre-tax revenue composition, with income from affiliate firms; primarily CSCS accounting for 39.91% in 2024, in comparison with over 92% in 2023. This means that the Group’s core enterprise operations contributed a considerably bigger share of earnings than in earlier years.
Robust core operations amid liquidity issues
- The corporate’s core operational efficiency remained strong, mirrored within the vital development in working revenue, working money move, and working revenue margin.
- Internet money move from working actions surged 2,840.20% YoY to N9.033 billion, demonstrating sturdy money era from core enterprise operations.
- Nevertheless, money and money equivalents fell sharply by 86.76% YoY to N871 million, contributing to a decline within the present ratio to 0.54 from 1.27 in 2023. This alerts potential short-term liquidity issues regardless of improved money move from operations.
Stronger monetary place:
- Complete belongings grew 13.70% YoY to N68.040 billion, pushed by improved earnings and better retained income.
- Complete fairness and retained earnings elevated by 23.02% and 23.15% YoY, respectively, reinforcing monetary stability.
- The stability sheet enlargement of 13% and a discount in whole borrowing strengthened the corporate’s monetary place, with leverage declining by 8% to 1.40, signaling improved monetary well being.
Market efficiency
NGXGROUP’s share worth has proven blended efficiency in recent times. After declining 6% YtD in 2023, it rebounded with a 16% YtD acquire in 2024. As of February 28, 2025, the inventory is up 10.1% YtD, rating 56th on the NGX.
Buying and selling exercise stays comparatively sturdy, with 59.1 million shares exchanged over the previous three months, making it the 73rd most traded inventory on the NGX.
The document N4.4 billion dividend payout (N2.00 per share) may additional increase investor sentiment and doubtlessly drive further upside because the market reacts to the sturdy earnings and improved returns.
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