Cutix PLC Reports Pre-Tax Profit Surge Of 330% In July 2024

Cutix PLC, a leading manufacturer of electric cables in Nigeria, has reported a pre-tax profit of N454.6 million in July, representing an astonishing 330 percent increase from the N105.8 million recorded in the corresponding period of 2023.

This exceptional performance was driven by a significant rise in revenue, which surged by 63 percent year-over-year, reaching N3.5 billion compared to N2.1 billion in the previous year.

The robust increase in sales underscores Cutix PLC’s ability to capitalise on market opportunities and effectively sail across the challenges in the electric cable industry.

Despite a 58 percent increase in the cost of sales, which rose to N2.7 billion from N1.7 billion in the previous year, Cutix PLC’s gross profit soared by 83 percent , amounting to N803.9 million. This growth in gross profit highlights the company’s improved efficiency in managing production costs and maximising profitability.

The company’s operating profit also experienced significant growth, climbing to N422.6 million, a 134 percent increase compared to the previous year. Additionally, Cutix PLC successfully reduced its finance costs by four percent, bringing it down to N73.3 million from N76.1 million in 2023. This decrease in finance costs further contributed to the impressive rise in pre-tax profit.

Earnings per share for the period saw a dramatic increase, jumping by 333 percent year-over-year to N8.71, reflecting the company’s strong bottom-line performance. Furthermore, Cutix PLC’s total assets grew by 15 percent reaching N7.9 billion, up from N6.9 billion in the same period last year. Meanwhile, total liabilities remained stable at N3.7 billion, indicating a strong financial position.

In addition to its robust quarterly results, Cutix PLC had earlier announced a dividend payout of N528.4 million for the financial year ending April 30, 2024. The board of directors approved a dividend of N0.15 per share on July 11, 2024, a move that was well-received by investors, driving trading volume to a notable 284 million shares. This surge in market activity briefly pushed the stock price to a high of N5.13, although it later settled at N3.08 as of September 1, 2024.

The company’s outstanding financial performance has generated positive sentiment in the market, with expectations of continued growth in the coming weeks. Cutix PLC’s ability to deliver such strong results amidst a challenging economic environment underscores its resilience and strategic acumen, positioning the company for sustained success in the future.