Cutix revenue grows by 54.4% in Q2 2024

According to Cutix Plc Second Quarter financial results sent to the Nigerian Exchange Limited, the company records year-on-year growth in its top-line and bottom-line figures.

Basically, the company reported revenue of N7.82 billion for the six months period, up by 54.37 percent from N5.07 billion reported the previous year.

Profit after tax of N514.178 million was reported for the six months period, up by 13.72 percent from N452.138 million reported the previous year.

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, reflecting a 13.46 percent increase, with the company’s post-tax profit also climbing by 13.72 percent, 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 percent year-over-year, reflecting steady progress in the company’s financial position.

The company reported a 54.37 percent year-over-year increase in revenue for the period ending October 31, 2024, with cable and wire sales accounting for 77.7 percent of total revenue at N6 billion, followed by armored cable sales at 22.3 percent or N1.7 billion.

However, Cutix experienced a 74.30 percent rise in the cost of sales, totaling N6.4 billion, with raw material costs constituting 86.8 percent of this amount, reducing gross profit to N1.3 billion.

Operating profits declined by 21.21 percent, amid a 2.85 percent 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 percent 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 percent while earnings per share fell to N7.30, down from N12.84.

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 percent of inventories, totaling N2.1 billion, while raw materials made up 28.5 percent, 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.

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