McNichols Plc has announced its audited 2025 financial results, showcasing a substantial increase in profitability. The company reported a pre-tax profit of N391.7 million, a significant leap from the N151.7 million recorded in the previous year. This impressive performance was fueled by robust turnover and enhanced finance income.
Full-year revenue for 2025 rose by 6.95% year-on-year, reaching N6.2 billion. The company's operations are solely based in Nigeria, with beverage sales accounting for N5.9 billion, representing 95.64% of the total revenue. Food products contributed the remaining portion of the company's earnings.
Earnings per share saw a notable increase, rising to 27.87 kobo from 10.30 kobo in the prior year. In line with its financial performance, McNichols Plc declared a final dividend of 6 kobo per 50 kobo share, which is scheduled to be paid on August 6, 2026.
Key financial metrics for 2025 compared to 2024:
- Turnover: N6.2 billion, a 6.95% increase year-on-year
- Cost of sales: N5.5 billion (compared to N5.3 billion in 2024)
- Operating profit: N333.1 million, up 207.09% year-on-year
- Finance income: N61.1 million, up 22.52% year-on-year
- Pre-tax profit: N391.7 million, up 158.25% year-on-year
- Post-tax profit: N346.3 million, up 199.22% year-on-year
- Earnings per share: 27.87 kobo (compared to 10.30 kobo in 2024)
Factors driving the financial results:
The increase in revenue to N6.2 billion was accompanied by a rise in the cost of sales, which moved from N5.3 billion to N5.5 billion. Raw materials and consumables constituted the largest part of these costs, amounting to N5.2 billion, a slight increase from N5.1 billion in the previous year.
Despite the rise in cost of sales, gross profit improved to N690.6 million from N470.6 million in the 2024 financial year. The company also demonstrated effective cost management, with administrative costs decreasing to N196.6 million from N216.7 million. Distribution costs saw a moderate increase to N169.7 million.
Additional income of N8.9 million, primarily from the sale of waste products and packaging materials, also contributed to the company's earnings. This, combined with improved operational efficiency, helped push operating profit up by 207.09% to N333.1 million.
Finance income also showed positive growth, increasing to N61.1 million from N49.9 million. Concurrently, finance costs saw a sharp reduction to N2.5 million, further easing the pressure on the company's overall profitability.
Consequently, pre-tax profit experienced a substantial growth of 158.25%, reaching N391.7 million. After accounting for taxes amounting to N45.4 million, the profit after tax stood at N346.3 million, marking a 199.22% increase year-on-year.
On the balance sheet, total assets grew to N1.8 billion from N1.3 billion. Equity also increased to N929.2 million, bolstered by a significant rise in retained earnings.
