Prime Business AfricaIn the first quarter (Q2) of 2025, Cutix Plc recorded a marginal decline of 1 percent, after generating N3,52 billion, compared to the N3,55 billion reported in the corresponding period in 2024.
According to the company’s unaudited financial statements for the Q1 period, which falls between May and July based on Cutix’s fiscal year, the decline in turnover was driven by cables and wire sales, which fell 12.14 percent, and zero revenue in distribution board, distribution box, and changeover switch products.
Join our WhatsApp ChannelDespite the decline, the cost of production increased to N2.89 billion in Q1 of this year, higher than the N2,74 billion posted in Q1 2024, indicating an increase of 5.42 percent.
Consequently, the cost of sales gulped 82.23 percent of Q1 2025’s revenue, up from the 77.36 percent production expenses gulped in the corresponding period last year.
The earnings report also disclosed that gross profit declined by 22.15 percent to N625.87 million during the period under review, falling below the N803.97 million recorded in the first quarter of 2024.
Also, selling and distribution expenses dropped by 3.38 percent year-on-year, from N76.13 million to N73,55 million, and administrative expenses declined by 9.44 percent, from N305.21 million to N276,38 million.
In the same vein, Cutix recorded a 34.70 percent decrease in operating profit, which nosedived from N422.62 million in the first quarter of last year to N275.93 million in the same period this year.
Similarly, the company reported a 98.96 percent decline in other income, as it dropped to N1.08 million in Q1 2025, failing to replicate the N105.36 million notched up in Q1 2024.
Cutix’s earnings problem was further compounded by a 160.30 percent increase in finance cost, which increased to N190.80 million in the first quarter of this year, surpassing the N73.30 million posted in Q1 2024.
As a result, the company’s profit before tax ({PBT) declined to N86,21 million in Q1 2025, falling below the N454,68 million recorded in the corresponding period last year, representing a decrease of 81 percent.
Consequently, Cutix’s income tax fell by 80 percent to N29.31 million during the period under review, compared to the N147.97 million filed in Q1 2024.
Despite a decline in tax expense, Cutix’s profit after tax (PAT) declined to N56.90 million in Q1 2025, falling to replicate or surpass the N306.70 million reported in the first quarter of last year, indicating an 81 percent drop.
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