UPDC loss drops to N115.9m

UPDC Plc has reported a loss of N115.9m for the first half of 2024; an 11.59 per cent improvement from the N131.1m loss recorded in the corresponding period of 2023.

This was disclosed in the company’s second-quarter consolidated and separate financial statements filed with the Nigeria Exchange Limited on Monday.

The company experienced a 21 per cent increase in revenue, from N2.15bn in the first half of 2023 to N2.60bn.

The real estate and hospitality segments were major contributors to the revenue increase, driven by higher sales and improved occupancy rates in key properties.

From a N1.59m loss in 2023 to a N70.74m gain, operating profit experienced a turnaround.

The taxes for the period were reduced by 32 per cent, from N89.36m in 2023 to N60.73m, helping to cut the firm’s loss.

While selling and distribution expenses rose by 156 per cent from N37.883m in 2023 to N97.065m in 2024, administrative expenses saw a 32 per cent reduction from N1.07m in 2023 to N810.76m, which helped in mitigating overall expenses.

UPDC’s cash and cash equivalents stood at N4.53bn as of June 30, down eight per cent from N4.92bn in December 2023.

The group’s total equity declined by one per cent to N8.72bn in June, from N8.84bn in 2023.

UPDC reduced its total liabilities by six per cent, from N19.66bn in 2023 to N18.56bn in June, showcasing debt management and repayment efforts.

The market capitalisation of UPDC as of June 30, stood at N25.80bn. The company’s shares were traded at N1.39 each at the end of the period under review.

Looking ahead, UPDC aims to continue leveraging its core strengths in real estate and hospitality, focusing on strategic investments and operational excellence to drive sustainable growth and profitability in the coming quarters.