Oando Plc has just released its audited results for the full year of 2021 showing pre-tax profits grew by 133.12% year on year, reaching N44.474 billion.
Key highlights 2021 FY vs 2020 FY
- Revenue N803.460 billion +68.42% YoY
- Cost of sales N761.934 billion +74.50% YoY
- Gross Profit N41.526 billion +2.68% YoY
- Reversal of (impairment)/impairment of assets, net, N104.927 billion +266.82% YoY
- Administrative expenses N106.367 billion +15.24% YoY
- Operating profit/(loss) N78.830 billion+206.04% YoY
- Net Finance cost N34.502 billion -42.74% YoY
- Profit for the year N32.859 billion +123.36% YoY
- Earnings per share N2.88 +130.32% YoY
- Cash and cash equivalent N27.877 billion +92.25%.
Oando’s significant growth in pre-tax profit can be attributed to the reversal of impairment of non-current receivables and trade and other receivables amounting to N104.382 billion in 2021 FY.
- Also, the company reported a 68.42% growth in revenue, primarily driven by the sales of crude oil, which primarily contributed to the overall growth in revenue.
- However, the company experienced substantial growth in inventory cost and other directly attributable costs, leading to a year-on-year surge of 74.50% in the cost of sales, reaching a total of N761.934 billion. Consequently, the growth in gross profit was moderated to a rate of 2.68%.