NAHCO posts 19% profit jump to ₦16bn in Q3 2026, dividend cover improves

NAHCO Plc delivered double-digit growth across key metrics in Q3 2026, with net profit rising 19.2% to ₦16.04 billion from ₦13.46 billion a year earlier. Revenue climbed 16.5% to ₦55.64 billion, driven by a 31% surge in cargo handling and 47% jump in free zone, logistics and lounge services to ₦2.91 billion. Equipment rental added ₦4.45 billion.

Operating margin improved to 38.9% from 37.98% despite gross margin compression from 54.4% to 50.6% due to inflation. Finance costs fell 19.7% to ₦1.26 billion while finance income dropped 39% to ₦834 million. Pre-tax profit reached ₦21.24 billion, lifting EPS to ₦7.20 from ₦6.04.

The balance sheet strengthened: total assets grew to ₦58.85 billion from ₦55.12 billion in December 2025, shareholders' funds rose to ₦29.86 billion, and ROE hit 53.7%. Dividend cover improved to 1.15x from 0.97x, giving the board room for higher payouts after shareholders approved a combined ₦12.18 billion cash dividend (₦6.25/share) plus 1:7 bonus shares for 2025.

GMD Olumuyiwa Olumekun attributed growth to quality expansion across aircraft handling, cargo, and logistics, supported by lower admin and finance costs. Chairman Seinde Fadeni emphasised continued investment in human and technical capabilities to sustain West Africa leadership.

With dividend cover above 1x and ROE above 50%, the trajectory points to sustained shareholder returns. Will you increase your position, hold for the dividend trajectory, or take profits after the 19% earnings beat?

SOURCE: https://nairametrics.com/2026/11/06/nahco-grows-profit-to-n16b-in-nine-months/