Julius Berger’s Nine-Month Profit Slumps 44% To N10.19bn

Julius Berger Nigeria Plc recorded a 44.2 per cent decline in profit after tax to N10.19bn in the nine months ended September 30, 2026, despite an increase in revenue, as rising operating expenses and finance costs weighed on its earnings.

The construction company disclosed this in its unaudited consolidated financial statements for the third quarter ended September 30, 2026, filed with the Nigerian Exchange Limited.

The company’s profit after tax fell from N18.25bn recorded in the corresponding period of 2025 to N10.19bn in the review period, representing a decline of approximately N8.06bn.

Profit before tax also dropped by 26.5 per cent to N35.92bn from N48.89bn in the corresponding nine months of the previous year.

The decline in earnings came despite a strong performance in revenue, which increased by 21.5 per cent to N657.15bn from N540.82bn recorded in the corresponding period of 2025.

Julius Berger’s cost of sales, however, rose by 19.8 per cent to N551.94bn from N460.66bn, reflecting the higher costs associated with delivering its construction projects.

Despite the increase in costs, gross profit improved by 25 per cent to N105.21bn from N84.16bn in the corresponding period of the previous year.

However, the growth in gross profit did not translate into higher bottom-line earnings, as the company recorded a decline in operating profit and higher finance costs.

Investment income increased to N12.86bn from N9.66bn, providing some support for earnings. However, finance costs rose to N4.31bn from N3.99bn, adding to the pressure on the company’s profitability.

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Administrative expenses increased to N76.06bn from N69.99bn, while marketing expenses rose to N568.11m from N316.62m.

The company also reported impairment losses on trade receivables of N5.56bn, compared with N60.92bn in the corresponding nine-month period of 2025, indicating a substantial reduction in impairment charges.

Julius Berger’s earnings per share declined to N6.24 from N11.28, reflecting the weaker profit attributable to shareholders.

For the third quarter alone, the company’s profit after tax fell sharply to N4.13bn from N11.14bn in the corresponding period of 2025.

Revenue for the three months ended September 30, 2026, increased to N232.59bn from N197.37bn, while gross profit rose to N38.39bn from N20.15bn.

Profit before tax for the quarter, however, declined to N12.40bn from N16.72bn in the corresponding period of the previous year.

The quarterly performance suggests that the company’s revenue growth and improved gross profit were insufficient to prevent a substantial decline in net earnings.Meanwhile, Julius Berger’s total assets stood at N1.03tn as of September 30, 2026, compared with N1.09tn at the end of December 2025.

Total equity increased to N288.95bn from N288.21bn at the end of 2025, while total liabilities declined to N736.34bn from N792.45bn.

The company’s current assets stood at N535.89bn, while current liabilities rose to N375.67bn, highlighting the importance of working capital management in sustaining its construction operations.

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