Oando Delivers 67% EPS Surge in FY2025
Oando Plc’s unaudited interim consolidated and separate financial statements for the year ended 31 December 2025 reveal a sharply contrasting performance profile in line with significant top-line contraction offset by balance-sheet strengthening, non-core income volatility, and resilient bottom-line delivery.
The company group revenue declined materially to N3.21 trillion from N4.09 trillion in the prior year, reflecting softer trading volumes and pricing pressures across core operations. The cost of sales tracked a similar downward trajectory, easing to N3.19 trillion from N3.93 trillion, but the compression in margin was pronounced. Consequently, gross profit fell steeply to N27.75 billion from N155.89 billion, underscoring reduced operating leverage during the year.
Other operating income swung sharply negative, deteriorating from a positive N1.10 trillion in 2024 to -N240.21 billion in 2025, materially weighing on operating performance. This, combined with an N32.31 billion impairment charge on non-financial assets (versus nil in 2024), drove operating income down to N50.23 billion, from N569.68 billion year-on-year.
That said, cost rationalisation was evident. Administrative expenses declined significantly to N278.06 billion from N610.86 billion, reflecting ongoing efficiency measures and tighter cost controls across the group.
Finance costs rose sharply to N465.40 billion from N236.84 billion, partly driven by interest accruals and the impact of a N48.10 billion reversal of prior default interest. Encouragingly, finance income surged almost threefold to N381.11 billion (2024: N47.10 billion), supported by improved returns on financial assets and reversals of prior impairments. As a result, net finance cost moderated to N36.10 billion, a notable improvement from N186.64 billion in the prior year.
Despite these offsets, profit before tax declined sharply to N15.20 billion from N383.82 billion, reflecting the magnitude of operating headwinds. However, profit for the year increased to N241.31 billion (2024: N220.12 billion), suggesting the influence of below-the-line adjustments, tax effects, and non-operating gains.
Oando’s liquidity position strengthened meaningfully. Cash and cash equivalents rose to N380.29 billion from N221.78 billion, while restricted cash declined to N26.85 billion (2024: N54.24 billion), indicating improved cash flexibility. Finance lease receivables increased to N55.58 billion, while trade and other receivables and contract assets edged up to N783.34 billion.
On the liabilities side, trade and other payables increased to N2.95 trillion from N2.55 trillion, reflecting higher working capital obligations. Borrowings remained broadly stable at N1.30 trillion (2024: N1.31 trillion), suggesting disciplined debt management amid a high-interest-rate environment.
Total assets expanded to N6.70 trillion from N6.43 trillion, matched by a corresponding rise in total liabilities. Total equity improved to N553.83 billion from N360.98 billion, despite retained earnings declining to N90.22 billion from N292.40 billion, pointing to revaluation effects and capital structure adjustments during the year.
Earnings per share (EPS) strengthened to N30 from N18 in 2024, highlighting earnings resilience despite the sharp revenue decline.
At a current market price of N40.50 per share, Oando is trading at a price-to-earnings (P/E) ratio of approximately 1.4x, which appears undemanding relative to historical levels and sector peers. The Q4 2025 numbers, however, reflect elevated earnings volatility, heavy reliance on finance income, and sensitivity to non-operating items rather than sustainable core revenue growth.
In the near term, earnings visibility remains constrained by margin pressure and unstable operating income. While on medium to long term, improved liquidity, stable borrowings, and ongoing cost discipline provide a foundation for recovery, particularly if core revenue stabilises and operating income normalises.
Investor’s Recommendation:
For risk-tolerant and value-oriented investors, Oando presents a speculative “BUY/ ACCUMULATE” opportunity at current levels, premised on balance-sheet strength and potential earnings normalisation. Conservative investors may prefer a “HOLD” stance, awaiting clearer evidence of sustainable revenue recovery and improved operating margins.
All-in-all, Oando’s Q4 2025 performance reflects a company navigating a challenging operating cycle, yet maintaining financial resilience positioning it as a cautiously attractive play for investors with a medium-term horizon. #Oando Delivers 67% EPS Surge in FY2025#
