ARDOVA PLC Q3-2020 shows a 3.75% growth in revenue from N123.55 in 2019 to N 128.18 in the current period. This was majorly driven by increased sales across the fuels and lubricants segments of the business. However, cost of sales advanced by 3.31% to N119.23bn from the N115.41bn recorded in Q3-2019.
Higher Expenses Erode Operating Profit
Following a surge in the operating expenses notably in depreciation expenses and shrinkages losses, Operating profit declined by 30.15% to N2.91bn. In addition, finance income and finance cost waned by 95.19% and 131.86% respectively leading to a reduction in net finance cost by 78.19%.
Consequently, Profit before tax declined by 137.02% to N 2.4bn compared to the N6.54 generated in Q3-2019. Profit after tax also shrunk by 135.88% to N1.89bn while the EPS settled at N1.45 compared to the N4.03 recorded in Q3-2019.