The recovery was driven by a combination of stronger top-line performance, significantly lower finance charges, and higher finance income, even as cost pressures weighed on gross margins.
Revenue Expands on Equipment, Auto Sales
Full-year revenue rose 40.94% year-on-year to N8.3 billion, up from N5.9 billion in 2024. Equipment sales remained the company’s core income driver, contributing N7.07 billion — representing 84.61% of total revenue — while automobile sales accounted for N1.28 billion.
Despite the revenue growth, cost of sales climbed sharply by 83.09% to N7.1 billion, compared with N3.8 billion a year earlier. As a result, gross profit declined to N1.23 billion from N2.04 billion in 2024, reflecting margin compression during the period.
Distribution and administrative expenses eased slightly to N1.28 billion, down from N1.5 billion, offering modest cost relief.
Finance Costs Drop, Income Rises
A key contributor to the improved bottom line was a steep reduction in finance charges, which fell to N101.6 million from N599.9 million in the prior year. In addition, the company recorded finance income of N597.6 million, further supporting profitability.
Other income also increased to N270.7 million, up from N143.8 million.
After accounting for these factors, pre-tax profit surged to N723.8 million. Following a tax expense of N245.9 million, profit after tax settled at N477.9 million, compared with N24.9 million recorded in 2024.
Balance Sheet Position
On the balance sheet, total assets stood at N23.9 billion at year-end. Current assets amounted to N19.9 billion, with debtors and other receivables representing the largest component at N11.4 billion.
Non-current assets totaled N3.9 billion, largely comprising property, plant and equipment valued at N3.5 billion.
Cash and cash equivalents closed the year at N2.7 billion, down from N3.9 billion in the previous financial year.
Market Performance
Investor sentiment toward SCOA Nigeria has been notably strong. The company’s shares have surged 437% year-to-date, closing at N38.15 as of February 26, 2026.
The stock recorded no price movement in the latest trading session, reflecting a 0.00% daily change. Market watchers expect investor reaction to the newly released FY2025 results to shape price action in subsequent sessions.
The latest figures signal a marked improvement in profitability for the auto and equipment distributor, though rising cost of sales highlights continued operational pressures even amid revenue expansion.