Cutix PLC’s pre-tax earnings for the May 1 – October 31, 2024, period was N764 million, up from N673.4 million the year before.
The company’s post-tax profit increased by 13.72% to N514.1 million, representing a 13.46% rise.
Due to a strong rise in cable and wire sales, revenue increased to N7.8 billion during the reported year from N5 billion in 2023.
Furthermore, total assets increased by 11.7% annually, indicating consistent improvement in the business’s financial standing.
Key Metrics Overview
- Revenue: ₦7.8 billion, up by 54.37% YoY
- Cost of Sales: ₦6.4 billion, an increase of 74.30% YoY
- Gross Profit: ₦1.3 billion, a slight growth of 0.39% YoY
- Operating Profit: ₦605.8 million, a decline of 21.21% YoY
- Finance Cost: ₦151.1 million, reduced by 2.85% YoY
- Other Income: ₦309.2 million, a substantial rise of 415.52% YoY
- Pre-Tax Profit: ₦764 million, up by 13.46% YoY
- Post-Tax Profit: ₦514.1 million, a 13.72% increase YoY
- Earnings Per Share: ₦7.30, down by 43.2% YoY
- Total Assets: ₦7.5 billion, a growth of 11.7% YoY
Analysis
A glance at Cutix’s financial statements reveals that “other income” significantly contributed to the reported pre-tax profit because the company’s high sales costs lessened the impact of revenue from its primary sources.
- With cable and wire sales accounting for 77.7% of total revenue, or N6 billion, the company reported a 54.37% year-over-year rise in revenue for the period ending October 31, 2024. Armored cable sales came in second, at 22.3%, or N1.7 billion.
- However, Cutix’s cost of sales increased by 74.30% to N6.4 billion, of which 86.8% was made up of raw materials, lowering gross profit to N1.3 billion.
- In spite of a 2.85% decrease in finance expenses, which came to N151.1 million, mainly due to interest accruing on term loans, commercial papers, and overdrafts, operating earnings fell by 21.21%.
- Positively, the company’s “other income” increased by an astounding 415.52% year over year, mostly from the selling of scrap.
- Consequently, the company’s outstanding scrap sales helped it generate a pre-tax profit of N764 million despite growing sales costs.
- While pre-tax profit increased by 13.72%, earnings per share decreased from N12.84 to N7.30.
Assets and liabilities:
Between October 31, 2023, and October 31, 2024, growth in inventory and a minor increase in non-current assets propelled Cutix PLC’s total assets from N6.76 billion to N7.55 billion.
- Raw materials, or N1.1 billion, made up 28.5% of stocks, while finished items made up 50%, or N2.1 billion.
- Plant, machinery, and equipment made up more than half of this category, and property, plant, and equipment accounted for the greatest portion of non-current assets.
Non-current liabilities decreased due to the company’s reduction in long-term borrowings, but current liabilities rose due to increasing short-term borrowings and trade payables.
- Commercial papers made up 49.1% of short-term borrowings, totaling N744.7 million.
- Totaling N520 million, Accruals represented a large component of trade payables, which amounted to N1.1 billion.
