The revenue side and the cost side
Revenue rose 9.25 percent from 21.064 billion naira to 23.013 billion naira. Over the same period pre-tax profit fell 41.49 percent from 9.958 billion naira to 5.827 billion naira and profit after tax fell 52.73 percent from 8.136 billion naira to 3.846 billion naira. Earnings per share fell from 601 kobo to 284 kobo.[1]
Direct costs rose 63.07 percent to 10.754 billion naira and administrative expenses rose 41.25 percent to 6.584 billion naira. Line by line, equipment running costs rose 202.94 percent to 1.104 billion naira, equipment repairs rose 117.81 percent to 2.374 billion naira and direct labour rose 53.90 percent to 2.584 billion naira. The ratio of direct cost to revenue rose from 31.31 percent to 46.73 percent, the gross margin fell from 68.69 percent to 53.27 percent and the operating margin fell from 47.60 percent to 26.18 percent.[1]
Which assumption carries the result
Repair and running lines rose faster than revenue, which is consistent with an ageing equipment fleet whose maintenance has been deferred. Input prices and currency pass-through lift the same lines too: when imported spare parts and fuel cost more, repair and running costs rise even if the physical condition of the equipment stays the same. The statement was published unaudited for the six months to 30 June 2026 and gives no separate volume and price for those lines, so the information needed to choose between the two explanations has not yet been published.[1]
The sensitivity can be bounded with the disclosed ratios. If revenue stayed at the same level and the ratio of direct cost to revenue returned to 31.31 percent, gross profit would rise by roughly 3.5 billion naira, covering most of the 4.131 billion naira lost at the pre-tax line. The assumption carrying the result is a single ratio: direct cost as a share of revenue. That is where the signal comes from, namely whether the ratio falls below 46.73 percent in the nine-month statement.[1]