The Initiates reports N5 billion profit FY2025, on booming waste management services

The Initiates Plc has published its audited financial statement for 2025, reporting a pre-tax profit of N5.07 billion, highlighting a strong improvement in overall performance.

This represents a 147.1% increase from N2.05 billion recorded in the previous year, mainly driven by revenue growth to N11.6 billion, up 150.9% year-on-year.

Most of the revenue came from waste management services, generating N8.7 billion largely from its Kwale operations, while its Port Harcourt operations contributed N2.9 billion.

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Despite higher costs, the company delivered solid profitability, with earnings per share rising to N3.81 compared to N1.55 in the previous year.

**Key Highlights (2025 vs 2024) **

• Revenue: N11.70 billion (Up 150.88% YoY)
• Gross profit: N6.16 billion (Up 145.52% YoY)
• Administrative expenses: N1.3 billion vs N567 million
• Operating profit: N4.91 billion (Up 130.25% YoY)
• Finance cost: N44.9 million vs N80.2 million
• Pre-tax profit: N5.07 billion (Up 147.10% YoY)
• Profit after tax: N3.39 billion (Up 145.56% YoY)
• Earnings per share (EPS): N3.81 vs N1.55
• Retained earnings: N5 billion vs N1.7 billion

**Driving the numbers **

A closer look at the company’s earnings shows that the cost of sales rose alongside revenue, reaching N5.5 billion compared to N2.1 billion in the previous year.

• Of this total, waste treatment and disposal costs stood at N1.9 billion, consumables at N1.3 billion, and waste collection and haulage at N1.13 billion.
• After accounting for these expenses, gross profit settled at N6.1 billion, more than double the N2.5 billion recorded in the prior year.

The company also recorded other income of N73.8 million, mainly from interest received and debt recovery activities.

After deducting administrative expenses, operating profit came in at N4.9 billion, representing a 130.3% increase from the previous year.

Following a finance cost of N44.9 million and adding the share of profit from associates, pre-tax profit stood at N5.07 billion.

• After deducting an income tax expense of N1.6 billion, profit after tax settled at N3.3 billion for the year.

On the balance sheet, total assets grew to N11 billion from N5 billion, while total equity rose to N5.7 billion, largely driven by retained earnings of N5 billion.

**Market reaction **

The company’s shares have yet to show a clear reaction to the release of its audited financial statements, with no immediate shift in price directly linked to the publication.

However, its equity on the Nigerian Exchange is up over 57% year-to-date in 2026, with more than 330 million shares traded within the period.