Ardova Declares N3.9bn Loss Amid 10.7% Rise in Revenue

By Dipo Olowookere

All seems not to be well with Ardova Plc as its financial statements for the year ended December 2021 showed that the energy firm recorded N3.9 billion loss. This came amid a 10.7 per cent improvement in the revenue generated in the period under consideration.

It was observed that despite the higher turnover posted in the fiscal year, the organisation closed the year with a lower gross profit as a result of a spike in the cost of sales and some expenses, which caused the loss for the year.

Analysis of the financial results by Business Post showed that Ardova generated N201.4 billion as revenue in FY 2021, higher than the N181.9 billion raked in in the 2020 accounting year.

This jump in turnover was due to improvement in earnings from fuels, LPG and cylinder sales, lubricants and greases, and haulage and transport services.

However, the cost of sales affected the earnings, rising to N191.6 billion from N169.8 billion in the preceding. This slashed the gross profit to N9.9 billion from N12.1 billion.

In the year under review, the company recorded a slight decline in selling and distribution expenses, closing at N1.9 billion versus the previous year’s N2.2 billion, though the administrative costs rose to N7.8 billion from N72 billion due to higher personnel expenses, bank charges, safety security, insurance, utilities and others.

All these costs and other caused Ardova to post an operating loss of N83.1 million last year compared with the operating profit of N2.7 billion achieved a year earlier.

With a lower other income of N868.8 million versus N1.5 billion in FY20, finance income of N157.1 million versus N271.0 million in FY20, finance cost of N3.6 billion versus N1.5 billion in 2020 and the N302.0 million incurred as acquisition-related cost from the 100 per cent of Enyo in November 2021, the energy company declared a loss before tax of N2.9 billion in contrast to the profit before tax of N2.9 billion in a year earlier.

After getting billed N906.5 million as income tax in the year, the firm announced a post-tax loss of N3.9 billion as against the post-tax profit of N1.9 billion a year earlier.

Consequently, it printed loss per share of N2.95 compared with the earnings per share of N1.44 in the preceding reporting year.