NGX Group Plc reports 65% drop in pre-tax profits for full year 2022

Nigeria Exchange Group (NGX) Plc has released its audited results for the financial year ended 31 December 2022, reporting a pre-tax profit of N823 million.

This represents a 65% decrease from the N2.401 billion the company reported during the same period in 2021.

Gross earnings   

• 2022 FY: N7.499 billion
• 2021 FY: N6.798 billion
• Change: +10.3%

Total operating expenses   

• 2022 FY: N8.827 billion
• 2021 FY: N6.516 billion
• Change: -35.5%

Pre-tax profit  

• 2022 FY: N823 million
• 2021 FY: N2.401 billion
• Change: -65.7%

Net Profit after tax 

• 2022 FY: N698.5 million
• 2021 FY: N2.248 billion
• Change: -68.9%

Cash and Cash equivalent

• 2022 FY: N4.749 billion
• 2021 FY: N2.248 billion
• Change: +111.3%

Bottom line: The bottom-line operating performance slipped mainly due to high operating expenses.

The Group said in its earning release obtained by Nairametrics that the Total expenses grew by 35.5% to N8.8 billion from N6.5 billion in FY 2021 primarily driven by interest expense on borrowings recorded as N2.1 billion. Personnel expenses (41.5% of total expenses) also grew by 13.1% to N3.7 billion (FY 2021: N3.2 billion) while operating expenses which accounted for 28.4% of total expenses fell by 7.7% to N2.5 billion from N2.7 billion in FY 2021.