Cutix PLC reported a pre-tax profit of N764 million for the period from May 1 to October 31, 2024, up from N673.4 million reported the previous year.
This reflects a 13.46% increase, with the company’s post-tax profit also climbing by 13.72%, reaching N514.1 million.
During the reported period, revenue surged to N7.8 billion, up from N5 billion in 2023, driven by a robust increase in cable and wire sales.
Additionally, total assets grew by 11.7% year-over-year, reflecting steady progress in the company’s financial position.
Key highlights
- Revenue: N7.8 billion, +54.37% YoY
- Cost of sales: N6.4 billion, +74.30% YoY
- Gross profit: N1.3 billion, +0.39% YoY
- Operating profit: N605.8 million, -21.21% YoY
- Finance cost: N151.1 million, -2.85% YoY
- Other income: N309.2 million, 415.52% YoY
- Pre-tax profit: N764 million, 13.46% YoY
- Post-tax profit: N514.1 million, 13.72% YoY
- Earnings per share: N7.30, -43.2% YoY
- Total Assets: N7.5 billion, 11.7% YoY
Commentary
A cursory look at Cutix’s financial results shows that ‘other income’ played a key role in the reported pre-tax profit, as high costs of sales dampened the full impact of income from the company’s main revenue sources.
- The company reported a 54.37% year-over-year increase in revenue for the period ending October 31, 2024, with cable and wire sales accounting for 77.7% of total revenue at N6 billion, followed by armored cable sales at 22.3% or N1.7 billion.
- However, Cutix experienced a 74.30% rise in the cost of sales, totaling N6.4 billion, with raw material costs constituting 86.8% of this amount, reducing gross profit to N1.3 billion.
- Operating profits declined by 21.21%, amid a 2.85% drop in finance costs, which stood at N151.1 million, primarily due to accrued interest from term loans, commercial papers, and overdrafts.
- On a positive note, the company saw a remarkable 415.52% year-over-year increase in ‘other income’, particularly from the sale of scrap.
- Consequently, despite rising costs of sales, the company achieved a pre-tax profit of N764 million, buoyed by strong performance from scrap sales.
- Pre-tax profit grew by 13.72%, while earnings per share fell to N7.30, down from N12.84.
Assets and liabilities position:
Between October 31, 2023, and October 31, 2024, Cutix PLC’s total assets increased from N6.76 billion to N7.55 billion, driven by growth in inventories and a slight rise in non-current assets.
- Finished goods accounted for 50% of inventories, totaling N2.1 billion, while raw materials made up 28.5%, amounting to N1.1 billion.
- Among non-current assets, property, plant, and equipment were the largest component, with plant, machinery, and equipment comprising over 50% of this category.
The company reduced its long-term borrowings, leading to a decrease in non-current liabilities, while current liabilities increased due to higher short-term borrowings and trade payables.
- Commercial papers made up 49.1% of short-term borrowings, totaling N744.7 million.
- Accruals, totaling N520 million, represented a significant portion of trade payables, which amounted to N1.1 billion.