Largely driven by infrastructural inadequacy, Nigeria’s troubled power sector which cost Africa’s largest economy $29 billion annually holds an opportunity for local electric cable manufacturers.
Cutix Plc, one of the country’s foremost wire manufacturing companies is one of such businesses. The electric cable maker grew its profit by most in seven years in the first quarter financial period to July 31 2021.
The Nnewi-based company reported profit growth of 5.06 percent to N137.02 million in the seventh month of this year from N130.45 million in the corresponding period of 2020, as compiled from the company’s unaudited financial results.
The 2021 profit reported by Cutix is the highest the company has recorded since 2013 when the Nigerian Exchange Group (NGX) started publishing the financial results on its website.
Meanwhile, Cutix had projected at the beginning of the year that it expects its 2021 fourth-quarter profit to increase by 9 percent to N148 million. With its performance so far, the company is N10 million away from reaching its projections.
The company’s earnings forecast issued by the management and signed by the Company’s CEO and CFO was made on the ground that the Nigerian economy will continue to improve, as the country recovers from the impact of COVID-19.
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Breakdown of Cutix financial result for the period ended July 31 showed that its revenue grew by 25 percent to N1.86 billion in July from N1.48 billion in the comparable period of last year.
Its earnings per share was up by 13 percent from N7 in 2020 to N7.92 in 2021.However, its gross profit, the instrument used to determine the efficiency ratio of a company, how well it was able to use its resources to grow profit, was up by 18.92 percent to N466.46 million in 2021 from N392.24 million in 2020.
This was largely driven by the increase in the company’s operations expenses. Cutix reported an increase in its operating cost by 27.52 percent to N1.39 billion in the review period from N1.09 billion in the same period of the previous year.
Incorporated in 1982, Cutix Plc manufactures and distributes various kinds of cables such as electrical wires, telecommunication wires, to automobile wires. Some typical examples of the company’s wide range of products are insulated copper conductors, PVC insulated, and sheathed flat twin/three-core copper cables. Others are low tension bare aluminium conductors and reinforced aluminium conductor steel wires.
Cutix Plc also manufactures bare stranded copper conductors as well as bare copper conductors which are used for earthing electrical installations and the production of copper cables.
