- N5m turns into N107m in 12 years
Investors in Nigerian Aviation Handling Company (NAHCO) Plc have seen the value of their investments rising by more than 2,048 per cent over the past 12 years as the leading aviation handling group emerged as the indicative stock for the wealth-creating potential of the Nigerian stock market.
Trading analysis by The Nation’s Market Intelligence yesterday showed that NAHCO’s share price appreciated by 1,527 per cent over the 12-year period, representing average annual capital gain of 127.2 per cent.
When two bonus issues undertaken during the period were considered, total value of the shareholdings increased by 2,048 per cent, indicating average annual gain of 170.64 per cent.
The analysis, covering August 20, 2013 and August 20, 2025, showed that NAHCO’s share price rose from N6.30 to N102.50 per share, a cumulative increase of 1,527 per cent or average annual growth of 127.2 per cent.
An investor who staked N5 million on NAHCO on August 20, 2013 closed yesterday with total share value of N107.38 million, representing cumulative return of 2,048 per cent over the 12-year period and average annual return of 170.64 per cent.
The total share value of N107.38 million included two bonus issues undertaken by the company during the period, but excluded cash dividends paid by the company noted for consistent cash dividend payment.
With N5 million, total shareholdings stood at 793,651 shares at the beginning of the prototype portfolio and closed yesterday with about 1.048 million shares. NAHCO had declared bonus shares of one share for every 10 shares held in 2015 and followed this with a bonus of one share for every five shares held in 2022.
Bonus issue or scrip dividend represents shares that are distributed free to shareholders on the proportion of their shareholdings as at the qualification date. Such bonus shares are paid for from the reserves of the company, typically accumulated retained earnings. As such, bonus issuance illustrates earnings capacity and profitability of a company.
NAHCO, which was privatized in 2005, currently has more than 72,000 shareholders.
Market analysts said stocks like NAHCO underscored wealth-creating and distributing capacity of the stock market, building up significant gain for investors over a period of time.
They pointed out that the success of NAHCO pointed to the indirect wealth distribution of the government’s privatisation programme.
Analysts attributed NAHCO’s capital gain to the continuing growth in the operations and improvements in the management of the company.
Managing Director, HighCap Securities, Mr. David Adonri said the performance of NAHCO underlined its strong fundamentals.
According to him, the capital market is information driven as all the information available about an issuer or a company as well as macroeconomic fundamentals and sociopolitical environment now and into the foreseeable future are priced into the value of securities.
“The combination of all forces above shape the fundamentals of a company and dictates the direction of price movement of the stock through the market mechanism of supply and demand.
“A stock like NAHCO has appreciated heavily over the years because of its strong fundamentals, high dividend yield and consistent dividends payout. Over time, there is correlation between a company’s fundamentals and growth in its market value,” Adonri, a senior investment banker said.
Managing Director, GTI Capital Limited, Mr Kehinde Hassan, described the linkage between fundamentals and share pricing trend like the relationship between a building’s foundation and the strength and height of the building.
He noted that while the stock market may be influenced temporarily by emotions, speculations and immediate macroeconomic development, solid fundamentals remain the ultimate support base that ensures that a company retains value over the years.
“Fundamentals refer to the core financial health and performance of a company. These include earnings per share (EPS), revenue growth depicting sales trajectory over time, profit margins and return on equity (ROE) which reflects how well the company uses shareholders fund and dividend payouts indicating cash returned to shareholders. These metrics help investors estimate a company’s intrinsic value,” Hassan, a chartered accountant and multi-asset stockbroker said.
In first half 2025, NAHCO rode on the back of a double in revenue and improving operating efficiency to leapfrog its net profit by 166.7 per cent to N8.88 billion.
Interim report and accounts of NAHCO for the half-year ended June 30, 2025 released at the NGX showed that the leading aviation handling group doubled group revenue by 102.06 per cent to N32.33 billion in first half 2025 as against N16.0 billion recorded in comparable period of 2024. Gross profit grew by 117.73 per cent from N8.80 billion to N19.16 billion. Operating profit jumped by 126.9 per cent to N11.64 billion in first half 2025 as against N5.13 billion in first half 2024.
With improving midline cost management, pre-tax profit leapt by 148.21 per cent from N4.75 billion in first half 2024 to N11.79 billion in first half 2025. Net profit after tax rose by 166.7 per cent from N3.33 billion to N8.88 billion. With these, earnings per share (EPS) leapt from N1.71 in first half 2024 to N4.55 in first half 2025, providing significant headroom for possible increase in dividend payouts.
Underlying ratio analysis underlined the growth in the group’s core business operations and increasingly efficient cost management. Gross profit margin improved from 55 per cent in first half 2024 to 59.26 per cent in first half 2025. Operating profit margin increased from 32.06 per cent to 36.0 per cent. Pre-tax profit margin also improved from 29.7 per cent to 36.5 per cent. Return on total assets tripled from 7.09 per cent to 20.14 per cent. Return on equity also jumped to 51.09 per cent as against 16.59 per cent.
The first half 2025 strengthened the outlook for NAHCO, which had increased dividend payout by 134 per cent for the 2024 business year. NAHCO had distributed N11.58 billion as cash dividends for the 2024 business year, representing a dividend per share of N5.94, compared with N4.95 billion paid for the 2023 business year.
The half-year 2025 results placed NAHCO on stronger footing to surpass its 2024 full-year performance, which had been hailed as a record performance. The audited report and accounts of NAHCO for the year ended December 31, 2024 had shown that profit before tax doubled by 115.4 per cent to N18.70 billion in 2024 as against N8.68 billion in 2023. Total revenue rose by 88.5 per cent from N28.40 billion in 2023 to N53.54 billion in 2024. With increased top-line efficiency, gross profit increased by 120.53 per cent to N33.08 billion in 2024 as against N15 billion in 2023.Operating profit also jumped by 123.93 per cent from N8.86 billion to N19.84 billion, underscoring the fact that the group’s performance was driven mainly by core business operations.
The NAHCO Group is a well-diversified conglomerate with interests in aviation ground handling, airport management, aviation training, free trade zone, commodities export, and energy solutions. In addition to its main ground handling business and cargo handling business, other subsidiaries included Mainland Cargo Options Limited, Nahco Free Trade Zone Limited, NAHCO Power Solutions Limited, NAHCO Management Services, NAHCO Travels & Hospitality Limited, NAHCO Aviation Academy and NAHCO Commodities Limited.
The latest results underscored the continuous brand dominance in the aviation services industry. NAHCO has remained the preferred partner for ground handling to most leading domestic and global airlines. It has recently signed not less than seven new ground handling contracts and renewals with many leading global airlines, while expanding its specialty.
In February 2025, NAHCO, in a first of its kind in the aviation industry, received Federal Government’s approval to handle shipments with radioactive contents in its facilities at the airports. The approval, jointly conveyed by the Nigerian Civil Aviation Authority (NCAA) and the Nigerian Nuclear Regulatory Authority (NNRA), directed “all importers and exporters of radioactive material” to “contact NAHCO for import and export of radioactive material”.
Group Managing Director, Nigerian Aviation Handling Company (Nahco aviance) Plc, Mr. Olumuyiwa Olumekun, said the approval was based on thorough assessment of the group’s facilities, including equipment and human resources, as well as the group’s compliance with global protocols and processes.
According to him, the company has put in place clear, diligent and thorough processes that would ensure 100 per cent compliance to procedures by highly – trained company professionals as they carry out the specialised functions.
Group Executive Director, Commercial and Business Development, Nigerian Aviation Handling Company (NAHCO) Plc, Prince Saheed Lasisi highlighted that the latest approval was a good development for importers and exporters who have been having challenges exporting and importing shipments with radioactive contents.
“NAHCO is solving all these issues for our clients, especially the big international airlines and international oil companies (IOCs) who require the approval granted NAHCO to move critical shipments which have radioactive contents in and out of the country,” Lasisi said.
Earlier, NAHCO had been selected by regional operators, Afrijet and Air Sierra Leone, to handle their ground operations in Nigeria. The contracts between the parties has seen NAHCO providing services for Afrijet’ flights into Port Harcourt and Lagos and Air Sierra Leone’s flights to Lagos. The contract with Afrijet was for a three-year period ending 2027 while Air Sierra Leone’s contract was for five years ending 2029.
NAHCO had also secured extension of groundling contracts with three leading international carriers, Emirates, Turkish and Virgin Atlantic. Emirates, which resumed schedule flight operations to Nigeria in October 2024, had previously appointed NAHCO to provide it with complete ground handling services. This arrangement would now be in place for the next five years.
British carrier, Virgin, has always pitched its tent with NAHCO because of its excellent service delivery while the company has always been the ground handlers of choice for Turkish Airlines, with long-standing contracts’ approvals and renewals.
Olumekun said the company’s expansion of existing businesses and focus on emerging opportunities would continue to drive growths in the years ahead.
According to him, with more than 45 years track record as the leader in ground handling service in Nigeria and the entire West Africa region, NAHCO would continue to invest in equipment and human capital to ensure optimal service delivery to clients and sustainable returns to shareholders.
Lasisi highlighted that expansions in the operations of the company reflected public trust in the brand.
According to him, any airline that provides the best service will depend on the groundhandler that provides the best service to keep its topflight position.
“It is a measure of the trust that the airlines have in us that they have extended our contracts with them. We are honoured with the trust reposed in us by our clients,” Lasisi said.
Analysts said the performance outlook places NAHCO in a strong position to achieve its five-year growth target of N300 revenue. Globally recognised as one of Africa’s leading ground handling service providers and with presence in all major Nigerian Airports, NAHCO plans to leverage its core business operations into strong positions across critical segments of the logistics value chain.
With the 2024’s total revenue of N53.54 billion already 39 per cent above the year’s projected revenue of N38.49 billion, the company had started its new five-year growth plan with great speed. Under the five-year strategic business plan, turnover was projected to rise successively to N71.12 billion in 2025, N101.93 billion in 2026, N146.07 billion in 2027, N209.34 billion in 2028 and N300 billion by 2029.
A breakdown of the N300 billion revenue target indicated that the group expected to generate N120 billion from the main ground handling business over the five-year period, N40 billion from cargo handling, N36 billion from NAHCO Logistics Services while NAHCO Free Zone, NAHCO Commodities, NAHCO Travel & Hospitality and NAHCO Aviation Academy would contribute N15 billion, N80 billion, N7 billion and N2 billion respectively.
Chairman, Nigerian Aviation Handling Company (NAHCO) Plc, Dr Seinde Fadeni, said the group has the capacity to attain the N300 billion revenue target.
Addressing shareholders at their annual general meeting in May, 2025, Fadeni said the group plans to further diversify its businesses as part of strategies to drive the group’s revenue above N300 billion within the next five years.
He said a five-year growth strategy being implemented by the company would enhance existing businesses and diversify into other emerging opportunities.
He said the board and management are completely focused on implementing the company’s five-year strategic blueprint, which would drive the next phase of the growth of the group.
He said the company has continued to strengthen its position as the market leader in aviation ground handling while diversifying into new opportunities.
According to him, the company is undergoing a transformative change that has seen improvement in operating strategy, equipment, staff welfare and management and significant investments in technical know-hows and new opportunities.
Fadeni said NAHCO has demonstrated remarkable resilience despite challenges in the operating environment, adding that the company has been positioned for even more rewarding future.
He said the company plans to deepen its diversification by building a hotel while also growing its commodities export business.
“The company continues to adapt and push forward, maintaining operational efficiency and striving to uphold its standard of service excellence and increased shareholders’ value.
“The board understands the important place of technology in modern business and is committing funds into providing the company with next generation technology to enable it run its processes smoothly and efficiently. The company is currently implementing Oracle ERP and HCM systems, a pivotal initiative designed to enhance NAHCO’s efficiency and digital transformation.
“In the last one year, the company has been re-fleeting its equipment. We have a target to replace all ageing equipment by December 2025,” Fadeni said.
He pointed out that the recent 50 per cent increase in salary, along with the existing annual profit-sharing initiative and semi-annual performance bonus scheme reflected the company’s commitment to staff welfare.
He said the Industry Champions Award given to the company by the industry regulator, Nigeria Civil Aviation Authority (NCAA), was indicative of what NAHCO stands for in the aviation industry.
He said: “We have emerged overtime as the face of resilience in the aviation industry. We support good causes. We represent the best in Nigeria’s aviation in corporate governance, in staff welfare and in profitability”.
Olumekun also noted that the recent recertification of the company in three major stations of Lagos, Abuja and Kano and the commissioning of a new NAHCO Export Packaging and Processing Centre, Lagos.
According to him, the new NAHCO Export Packaging and Processing Centre, Lagos, the first of its kind in Nigeria, was a strategic move to enhance the competitiveness of Nigerian products on the global stage while creating more jobs for Nigerians.
“We have embarked on a journey that not only strengthens our foothold in the global market but also contributes to the economic development of Nigeria,” Olumekun said.
He outlined that the group would focus on four areas of sustained growth, equipment re-fleeting, digitization and environmental social governance (ESG) to ensure better performance in the period ahead.
He explained that the diversified nature of the group and the onboarding of new business ventures would ensure that the group sustain its growth trajectory.
“Since transiting from being the foremost ground handling service provider in the entire sub-region to being a diversified, total logistics group, we have been driven by the earnest desire to provide unmatched level of excellent service delivery to our clients. This commitment has become more urgent as we seek to satisfy new demands for excellence and to improve shareholder value,” Olumekun said.
He commended shareholders, customers and staff of the company for their supports and commitments, which have continued to enable the group perform better every year.
“We will continue to work together to ensure even better performance for the company,” Olumekun said.
Market pundits expect NAHCO’s share price to remain bullish overtime as the group continues to expand its operations.
