SAHCO decries soaring expenses, posts strong revenue

By Dickson Omobola

Ground handling company Skyway Aviation Handling Company, SAHCO, has expressed concern over rising operational costs in the country’s air transport sector, saying the increasing expenses affect service delivery.

Managing Director of SAHCO, Mrs Adenike Aboderin, lamented that overhead expenses, inflation, foreign exchange challenges, among others, have made some operational targets unrealistic.

Addressing newsmen in Lagos, she said: “You all know what we are facing in the aviation industry. Overheads are going higher, inflation, foreign exchange, cost of utilities and most of our equipment and spare parts are foreign-based. That has brought a lot of headwinds and impractical outcomes for us.”

She, however, noted that despite these challenges, the organisation recorded a 57 per cent year-on-year increase in revenue, rising from N20.1 billion during the same period last year to N31.7 billion.

She added that SAHCO’s gross profit increased by 47 per cent from N12 billion to N18 billion, while profit before tax grew from N5.5 billion to N10 billion.

She said: “Direct costs also went up as a result of increased pricing. Gross profit has gone up to N17 billion from N12 billion.

“For administrative expenses, we have been able to keep them quite low. We have tried to be nimble, to make sure that costs are pooled, and to use technology to drive processes, thereby reducing expenses. Profit before tax is N10 billion, up from N5 billion.

“That is a six per cent increase. Income tax expenses stand at N1 billion, which is a 106 per cent rise. If you look at the revenue of N31.7 billion, compared to N20.1 billion for the same period last year, that is a 57 per cent year-on-year increase, which is highly commendable despite all the headwinds we are facing.

“We invested heavily in assets, infrastructure and equipment, including green and sustainable equipment. We are working to gradually phase out aged equipment, and more acquisitions are on the way.

“We achieved financial resilience and growth by strategically investing in operational excellence, efficiency, technological infrastructure and sustainable partnerships with our stakeholders such as the airlines, agents and regulatory bodies.”

The post SAHCO decries soaring expenses, posts strong revenue appeared first on Vanguard News.