New luxury hotel boosts NAHCO’s earnings outlook

Nigerian Aviation Handling Company (NAHCO) Plc has further diversified its revenue base with the launch of a premier luxury hospitality suite located directly within the Murtala Muhammed International Airport (MMIA) Terminal II departure area.

The launch comes on the heels of the release of the unaudited results of NAHCO, which showed significant growths across key performance indicators in 2025, with net profit rising by 40 per cent to N18 billion.

Group Executive Director, Commercial and Business Development, Nigerian Aviation Handling Company (NAHCO) Plc, Prince Saheed Lasisi, said Sapphire Hotel, the 20-room luxury hotel being operated by NAHCO Travel and Hospitality Limited (NHTL), marked a significant expansion of NAHCO’s footprint in the aviation service industry.

He said the new hotel was specifically designed to offer world-class comfort and convenience for international travellers, transit passengers layovers and business executives.

He said the establishment of Sapphire Hotel reinforced NAHCO’s diversification strategy, moving beyond ground handling into a comprehensive travel excellence ecosystem.

He noted that with the hotel strategically situated just seconds away from the airport check-in and boarding areas, Sapphire Hotel operates all round the clock providing a seamless transition from the terminal to a high-end resting environment.

“As one of Nigeria’s most reliable travel management organizations, NAHCO continues to position itself as a trusted partner for hassle-free movement. We guarantee that the guest experience at Sapphire Hotel will be second to none in the country,” Lasisi said.

He outlined that the facility was designed to be more than just a place to sleep but as a full-service hospitality hub.

Chief Executive Officer, NAHCO Travel and Hospitality Limited, Ms. Ruky Ogbetuo, highlighted the strategic features of the new facility to include tastefully furnished rooms with high-end amenities and on-site business office, dedicated workout and exercise area and laundry services.

She added that the hotel also offers complimentary breakfast for guests with diverse lunch and dinner menus as well as immediate proximity to the Sapphire Lounge an expansive 127-seater premium passenger facility featuring a VVIP section and a dedicated prayer area.

“Whether you are on a long layover or need to be seconds away from your boarding gate, we have created a space that perfectly balances luxury with functionality,” Group Chief Subsidiaries Officer, Nigerian Aviation Handling Company (NAHCO) Plc, Mr. M. Uddin said.

The launch event was attended by NAHCO’s top leadership including Group Managing Director, Mr. Olumuyiwa Olumekun, Chief Finance Officer, Mr. Adeoye Emiloju and Group Executive Director, Corporate Services, Dr. Sola Obabori.

The ceremony also drew key stakeholders from the Federal Airports Authority of Nigeria (FAAN), major international airlines and high-net-worth frequent flyers.

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The full-year results for the year ended December 31, 2025 released at the Nigerian Exchange (NGX) showed that NAHCO continued to grow its business apace whilst driving business efficiency to create bigger value for shareholders.

The unaudited results showed that total revenue rose by 21.8 per cent from N53.54 billion in 2024 to N65.21 billion in 2025. Gross profit increased from N33.08 billion to N38.61 billion. Despite the inflationary environment, increasing digitization and business know-how held down administrative expenses, almost unchanged at N13.89 billion in 2025 as against N13.82 billion in 2024. Operating profit thus rose by 25 per cent from N19.84 billion in 2024 to N24.84 billion in 2025.

Profit before tax jumped by 30 per cent to N24.256 billion in 2025 as against N18.702 billion in 2024. After taxes, net profit grew by 39.91 per cent from N12.865 billion to N17.999 billion. With this, earnings per share leapt by 40 per cent from N6.60 in 2024 to N9.24 in 2025.

The interim report for 2025 underscores the capability of the leading ground handling group to sustain its market-leading returns to shareholders.

Despite 134 per cent increase in dividend per share for the 2024 business year, the group’s dividend cover improved to 1.56 times in 2025 as against 1.11 times in 2024, underlining the significant headroom for the group to continue its impressive dividend payment record.

NAHCO’s balance sheet also emerged stronger, reflecting internally driven expansion in equipment and reserves. Total assets increased from N46.95 billion to N53.88 billion. Shareholders’ funds leapt by 32 per cent from N20.075 billion to N26.497 billion, showing high level of retained earnings.

Beyond-the-surface analysis further corroborated the positive outlook of NAHCO, with key performance ratios showing that the group’s performance was driven by operational growth and business efficiency. Operating profit margin improved from 37.05 per cent in 2024 to 38.08 per cent in 2025. Pre-tax profit margin rose from 34.9 per cent to 37.2 per cent. Return on total assets stood at 45.02 per cent in 2025 as against 34.93 per cent in 2024. Return on equity improved from 64.08 per cent to 67.93 per cent.

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.