By Priya Raman

NAHCO Plc’s nine-month revenue reached N55.64bn at September 30, 2026, up 16.51% from N47.76bn, while net profit rose 19.2% to N16.04bn.

The figures came from NAHCO’s interim report and accounts released on the Nigerian Exchange (NGX, the Nigerian stock market). Growth reflected improved performance across the company’s business segments as demand increased for aviation handling and logistics services.

Group Managing Director Mr Olumuyiwa Olumekun said the result reflected management’s emphasis on quality growth, business expansion, cost control and returns.

He added: “Our performance highlights the quality of service and facilities that NAHCO has come to be known for. We remain committed to sustaining this growth trajectory and in ensuring that our shareholders continue to enjoy the benefit of their investments.”

Why did operating profit grow faster than revenue?

The income statement shows where sales growth converted into earnings:

• Gross profit increased 8.5% to N28.17bn from N25.97bn.
• Operating profit rose 19.5% to N21.66bn from N18.14bn, supported by improved operating margins and cost management.
• Earnings per share (EPS, profit attributable to each share) improved to N7.20 from N6.04, indicating stronger returns to shareholders.

Revenue outpaced gross profit, and that divergence matters. The gross profit margin (gross profit as a share of revenue) fell from 54.38% to 50.63% under inflationary pressures.

Cost management and improved operating margins moved the other way: operating margin rose from 37.98% to 38.9%, while pre-tax margin increased from 37.56% to 38.17%.

In plain terms, NAHCO earned less gross profit per naira of revenue but turned its larger sales base into faster operating and bottom-line growth.

Which services drove revenue growth?

Cargo handling recorded about 31% growth, reflecting increased trade and e-commerce volumes, while aircraft handling remained NAHCO’s core business.

• Revenue from free-zone, transhipment (cargo transfer between transport legs), logistics, ticketing and lounge services jumped 47.17% to N2.91bn.
• Equipment rental and maintenance generated N4.45bn during the period.

How did financing affect profit?

Finance costs fell 19.7% to N1.26bn from N1.57bn, lowering the company’s finance bill. Finance income, however, dropped 39.1% to N834m from N1.37bn. The lower finance-cost bill partly offset the weaker income line, but profit before tax still increased to N21.24bn from N17.94bn despite that fall.

Did the balance sheet strengthen?

Total assets increased from N55.12bn in December 2025 to N58.85bn in September 2026. Shareholders’ funds also rose from N26bn to N29.86bn. Together, the earnings growth and larger equity base strengthened the group’s balance sheet.

What did the chairman say about strategy?

Chairman Dr Seinde Fadeni said: “The third-quarter performance demonstrated the group’s leadership in the aviation services industry and the resilience of its business strategy.”

He said NAHCO continued to invest in human, technical and infrastructural capabilities to sustain its position as the “most preferred and largest aviation handling and logistics group in West Africa.”

The central tension is clear: cargo and ancillary service growth, lower finance costs and tighter cost control more than offset a weaker gross margin, allowing operating and net profit to outpace revenue. Inflation remains the pressure point, while management’s continued investment in people, technical skills and infrastructure is central to sustaining the growth it reported.