The Initiates Plc has published its financial statement for the year ending December 31, 2024, revealing a pre-tax profit of N2.05 billion.
This represents a solid 294.87% increase from the previous year’s profit of N519.7 million, fueled by a significant rise in revenue.
For the full year, revenue surged to N4.6 billion, reflecting a 152.15% growth from the N1.6 billion reported in the prior year, with waste management services accounting for the largest portion, followed closely by industrial cleaning services.
Total assets reached N5.1 billion, a substantial increase from N2.5 billion the previous year, representing a 100.03% year-over-year growth.
Additionally, the company’s retained earnings increased to N1.7 billion, up 314.52% from N411.9 million reported last year, indicating strong financial health.
The company also declared a Final Dividend of N0.10 per 50 kobo share for the period ending December 31, 2024. This dividend, subject to withholding tax and approval, will be paid to shareholders listed in the Register of Members as of the close of business on April 4, 2025.
Key Highlights
- Revenue: N4.6 billion, +152.15% YoY
- Cost of sales: N2.1 billion, +83.83% YoY
- Gross profit: N2.5 billion, +270.21% YoY
- Other income: N189.9 million, +28.44% YoY
- Administrative expenses: N567 million, +149.03% YoY
- Result from operating activities: N2.1 billion, +256.59% YoY
- Finance cost: N80.2 million, +2.44% YoY
- Profit before tax: N2.05 billion, +294.87% YoY
- Post-tax profit: N1.3 billion, +296.20% YoY
- Total Assets: N5.1 billion, +100.03% YoY
- Retained earnings: N1.7 billion, +314.52% YoY
How the company made profits
The company reported a revenue increase of 152.15%, bringing in N4.6 billion, up from N1.8 billion the previous year.
- Much of this revenue originated from its Port Harcourt base, which accounted for N3.1 billion, while the Kwale base provided N1.5 billion.
- Waste management services were the main contributors, generating N2 billion from Port Harcourt and N1.5 billion from Kwale, with industrial cleaning services covering the remaining revenue
The cost of sales rose by 83.83%, reaching N2.1 billion, driven primarily by expenses related to consumables, waste collection, haulage, waste treatment, and disposal.
- Despite the rise in costs, gross profit grew by 270.2%, reaching N2.5 billion, up from N677.9 million last year
Path to profitability
Other income grew to N189.9 million, a 28.44% increase, mainly due to dividends received, which contributed N138.5 million.
- In 2024, The Initiates Plc received $87,669 in dividends from The Initiates Uganda Limited, accounting for 36% of the total approved dividend of $280,053.75.
- After a 15% withholding tax, this amount reflects the company’s share of dividends distributed based on its ownership.
However, administrative expenses increased significantly to N567 million from N227.7 million the previous year, largely driven by provisions for doubtful debts and employee costs.
More favorably, the company reported N2.1 billion from operating activities, compared to N598 million the previous year.
- However, finance costs rose to N80.2 million, up 2.44% from N78.2 million reported the previous year.
Ultimately, the company reported a pre-tax profit of N2 billion, reflecting a 294.87% increase from N519.7 million the previous year.
Asset position and retained earnings
Total assets increased to N5.1 billion, a significant rise from N2.5 billion the previous year, reflecting a 100.03% year-over-year growth.
- Non-current assets amounted to N2.1 billion, primarily driven by property, plant, and equipment, which constituted N1.9 billion.
- Current assets rose to N2.9 billion, up from N784.8 million, largely due to trade and other receivables totaling N2.8 billion.
Additionally, the company’s retained earnings grew to N1.7 billion, compared to the N411.9 million reported the prior year.
