Electric Cable Maker, Cutix PLC, reports pre-tax profit of N454.6 million for period ending July 31, 2024

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Sep 2, 2024 - 05:06
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Electric Cable Maker, Cutix PLC, reports pre-tax profit of N454.6 million for period ending July 31, 2024

Cutix PLC, a manufacturer of electric cables, has announced its quarterly results for the period ending July 31, 2024.

The company reported a significant surge in its pre-tax profit, which stood at N454.6 million, marking a 330% year-over-year increase from N105.8 million reported in the same period in 2023.

Cutix’s revenue also grew substantially, rising by 63% year-over-year from N2.1 billion in 2023 to N3.5 billion in 2024.

Commentary: 

Cutix PLC experienced a robust increase in sales for the period ending July 31, 2024, with revenue reaching N3.5 billion, a 63% year-over-year increase compared to the previous year’s N2.1 billion.

Despite a 58% rise in the cost of sales, the company’s gross profit surged by 83% to N803.9 million in 2024, up from N438.5 million in 2023.

Operating profit rose to N422.6 million, while finance costs decreased by 4% to N73.3 million compared to N76.1 million in the previous year, contributing to impressive pre-tax profits.

For the period ending July 31, 2024, pre-tax profits climbed by 330% year-over-year, reaching N454.6 million compared to N105.8 million reported the previous year.

This increase significantly impacted the company’s earnings per share, which rose by 333% YoY to N8.71 in 2024.

The company’s total assets also increased by 15% year-over-year, reaching N7.9 billion, up from N6.9 billion in the same period last year.

However, there was no significant change in total liabilities, which remained at N3.7 billion.

Dividends: 

In July, Cutix PLC announced it would pay N528.4 million in dividends for the financial year ending April 30, 2024. A corporate notice signed by the company stated that its board of directors approved a dividend of N0.15 per share on July 11, amounting to N528.4 million.

This announcement was well-received in the market, causing a substantial spike in trading volume to 284 million shares and driving the stock price to a high of N5.13. However, the stock price later retraced to close at N3 in August.

With the company’s strong financial performance, positive market sentiment is expected to continue, potentially driving the share price higher in the coming weeks. As of September 1, 2024, Cutix PLC’s share price stands at N3.08.

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