Ardrova Plc (ARDOVA) published its Q4-22 unaudited financials yesterday, reporting a loss per share of NGN2.17 in Q4-22 (vs loss per share of NGN3.90 in Q4-21), bringing the 2022FY loss per share to NGN5.83 (vs LPS of NGN2.95 in 2021FY).
Revenue contracted by 10.9% y/y in Q4-22, primarily due to a decline in the company’s fuel (-20.5% y/y) business segment that offset the gains recorded across the Lubricants and greases (+23.4% y/y); Solar system (+144.6% y/y); LPG and cylinder sales (+1.3% y/y); and Haulage and transportation services (+1,405.3% y/y) product lines. Meanwhile, on a q/q basis, revenue grew slightly by 4.1% following a 16.6% q/q increase in the lubricants and greases (16.6% q/q) segment.
Gross margin turned positive as it came in at 7.2% for the quarter (Q4-21: -0.5%), as cost of sales margin reduced to 92.8% (Q4-21: 100.5%). We highlight that the cost pressures in the period were influenced by the rally in crude oil prices (Average Brent price: USD89.13/bbl in Q4-22 vs USD78.47/bbl in Q4-21). Notwithstanding, ARDOVA’s operating margin remained negative at -0.8% (Q4-21: -3.4%) amid a 136.1% y/y increase in operating expenses.
Net finance costs declined by 45.1% y/y to NGN1.42 billion (Q4-21: NGN2.59 billion), primarily due to a 45.1% y/y fall in finance cost, and a 194.9% y/y growth in finance income. The lower finance costs outturn reflects the zero-balance recorded on net exchange difference on borrowings (Q3-21: NGN1.50 billion).
Overall, the company recorded a loss before tax of NGN2.83 billion, representing a 40.7% y/y decline from the NGN4.77 billion recorded in Q4-21. Accordingly, loss after tax settled at NGN2.83 billion (vs loss after tax of NGN5.10 billion in Q4-21) in the absence of any income tax expenses for the period.
