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ICT Stock Tops NGX Performers Despite Margin Pressures
NCR Nigeria Plc has returned to profitability in the 2025 financial year, according to its unaudited financial results released on the Nigerian Exchange (NGX) on Tuesday.
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The company recorded a profit after tax of ₦196 million in 2025, reversing a ₦2.17 billion net loss reported in the previous year. Earnings per share stood at ₦1.82 kobo.
Founded in 1949 and listed on the Nigerian Exchange in 1979, NCR Nigeria Plc is Nigeria’s first multinational ICT company quoted on the stock exchange.
Strong Stock Performance Despite Challenging Earnings
Despite pressure on margins, NCR Nigeria’s stock emerged as one of the top-performing equities on the NGX in 2025, recording multi-fold price appreciation amid investor optimism around its turnaround.
The improved financial performance was largely driven by significant reductions in overhead and operating costs, management noted.
Revenue Grows 43% Year-on-Year
Revenue from contracts with customers rose by 43 per cent year-on-year to ₦3.08 billion in 2025, compared with ₦2.15 billion in the corresponding period of 2024.
The strong revenue growth reflected increased business activity across the company’s ICT solutions and services portfolio.
Rising Cost of Sales Squeezes Gross Margin
However, higher direct costs weighed heavily on profitability. Cost of sales surged by 84.7 per cent to ₦2.81 billion in 2025, up from ₦1.52 billion in 2024.
As a result, gross profit declined by 56.3 per cent to ₦275.55 million, from ₦630.76 million in the prior year. Gross profit margin fell sharply to 8 per cent, compared with 29 per cent in 2024.
Sharp Decline in Other Income
Other income dropped significantly to ₦6.18 million in 2025, from ₦60.63 million recorded in the previous year, further impacting the company’s overall earnings profile.
Aggressive Cost Control Boosts Bottom Line
The return to profitability was largely supported by aggressive cost containment measures.
- Distribution costs fell by 60 per cent to ₦28.11 million, from ₦69.68 million in 2024.
- Administrative expenses declined by more than 97 per cent to ₦57.58 million, compared with ₦2.78 billion a year earlier.
These reductions significantly offset margin pressures from rising direct costs and declining other income.
Outlook
Analysts say NCR Nigeria’s 2025 performance underscores the impact of cost rationalisation and operational efficiency, even as the company navigates inflationary pressures and rising operating costs in the ICT sector.
