Q1’2023: Nigerian Exchange Group posts N109% increase in net profit

THE Nigerian Exchange Group (NGX Group) in its unaudited results for the period ended 31 March 2023, has recorded a 109 per cent increase in it’s net profit.

Basically, the profit for the period recorded increased to N310.0 million in Q1 2023 from N148.3 billion in Q1 2022, resulting in significant growth in profit after tax margin to 23.3 per cent in Q1 2023 from 8.9 per cent recorded in Q1 2022.

Due to an improved share of profit-equity accounted investees and a fall in finance cost, Profit before income tax expense of the Group increased by 21.5 per cent year-on-year (YoY) to N412.2 million in Q1 2023 from N339.2 million in the corresponding period in 2022 .

However, the Group’s top-line revenue fell by 20.5 per cent to N1.3 billion from N1.7 billion recorded in Q1 2022, which according to a statement from the Group, was driven primarily by reduced business transactions and consumer spending that resulted from the recently concluded general election and the CBN’s attempt to phase out Nigeria’s old higher denomination of banknotes.

Driven by the dip in revenue, NGX Group recorded a 14.2 per cent YoY decline in gross earnings to N1.6 billion from N1.8 billion reported in Q1 2022. On the other hand, other income grew by 57.7 per cent, offsetting the drop in revenue.

Commenting, Mr Oscar Onyema, the Group Managing Director/Chief Executive Officer, said: Despite the challenging macroeconomic environment during the quarter amidst cash and energy scarcity, and political tension from the 2023 elections, the Group remained resilient. We are pleased to announce a 109 per cent increase in net profit, achieved through the implementation of cost-saving measures that minimised the impact of revenue reduction, just as we are exploring new and innovative ways to capture more market share and appeal to a broader demographic.

“The Group will continue investing in innovative marketing strategies to appeal to the changing consumer preferences, as well as explore opportunities to expand product line, portfolio mix, and penetrate new markets. We stay committed to our long-term growth strategy and are confident in our ability to navigate the current challenging environment and create value for our stakeholders.”

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