Eterna Plc Posts 69% Profit Growth in 2025 Despite Revenue Dip

Eterna Plc reported a 69 percent increase in profit after tax for the financial year ended December 31, 2025, as improved foreign exchange stability, reduced finance costs and a surge in other income offset the impact of declining revenue and supported bottom-line growth.

According to its audited consolidated financial statements, revenue declined by 3.5 percent year-on-year to ₦302.52 billion in 2025 from ₦313.62 billion recorded in 2024.

The drop reflects softer top-line performance amid pricing and volume pressures within the downstream energy market.

Cost of sales increased to ₦290.07 billion from ₦273.67 billion in the previous year, significantly narrowing gross profit to ₦12.45 billion compared to ₦39.94 billion in 2024. The sharp contraction in gross margin highlights sustained input cost pressures during the year.

General and administrative expenses rose to ₦12.52 billion from ₦9.37 billion, indicating higher operating overheads. Selling and distribution expenses declined to ₦156.85 million from ₦327.16 million, offering limited relief on cost containment efforts.

Other income surged to ₦9.42 billion in 2025 from ₦99.62 million in 2024, providing a major boost to earnings. The company also avoided impairment charges during the year, compared to a ₦2.39 billion impairment loss recorded in the prior year.

Operating profit declined to ₦9.19 billion from ₦27.96 billion, reflecting weaker gross margins and higher operating costs.

However, the bottom line strengthened due to improved financial performance below the operating line.

Eterna Plc recorded a net foreign exchange gain of ₦107.67 million in 2025, compared with a substantial ₦15.79 billion foreign exchange loss in 2024. The absence of heavy FX losses significantly improved earnings stability.

Finance costs declined sharply to ₦2.45 billion from ₦7.69 billion, suggesting lower debt exposure or improved funding structure during the year under review.

Profit before tax rose by 53 percent to ₦6.86 billion from ₦4.48 billion in 2024. After a tax charge of ₦4.58 billion, profit after tax increased to ₦2.28 billion from ₦1.35 billion recorded in the prior year.

On a separate financial statement basis, profit after tax stood at ₦2.68 billion compared to ₦1.68 billion in 2024.

Earnings per share improved to ₦1.75 from ₦1.03 on a consolidated basis, while diluted earnings per share also rose to ₦1.75 from ₦1.03. On the separate statement, earnings per share increased to ₦2.06 from ₦1.29.

Analysis

The 2025 performance reflects a recovery in bottom-line earnings driven primarily by improved foreign exchange stability and lower finance costs rather than core operating expansion. The sharp decline in gross profit indicates that margin pressure remains a structural challenge.

The swing from a ₦15.79 billion FX loss in 2024 to a modest FX gain in 2025 was the most significant contributor to profit growth. Reduced finance costs further enhanced net earnings.

While revenue contraction and compressed margins present operational concerns, the company demonstrated resilience through financial discipline and improved currency exposure management.

Investors will closely monitor whether Eterna Plc can restore gross margin strength in 2026 and sustain earnings growth without relying heavily on non-operating income drivers.

Overall, the 2025 results signal improved financial stability, though operational efficiency and cost management remain key priorities for long-term performance sustainability.