• Sunday, May 26, 2024
businessday logo

BusinessDay

eTranzact sees 83% surge in profit in one year

eTranzact sees 83% surge in profit in one year

The after-tax profit of eTranzact International Plc, a Nigerian-based technology company, surged by 83.3 percent to N2.2 billion last year from N1.2 billion in 2022, according to its latest financial statement.

Its profit before tax also increased to N3.2 billion from N1.6 billion.

Further analysis shows that the company’s non-operating income surged by 1,987.5 percent to N8.35 million last year from N400,000 in 2022.

Read also: eTranzact non-operating income rises more than 20-fold to N8.4m

The surge in other operating income was driven by net realised foreign exchange gain on cash and cash equivalent and gain on disposal of property, plant, and equipment.

The company’s FX gain on cash and cash equivalent was N6.2 million and the gain on disposal of property, plant, and equipment was N2.2 million in 2023.

However, income tax expenses increased to N994.7 million from N434.2 million in 2022.

Revenue grew marginally to N33.9 billion from N22.5 billion. The cost of sales increased to N25.6 billion from N16.9 billion.

The company’s selling and marketing costs decreased to N268.3 million from N282.09 million. Administrative expenses grew to N4.94 billion from N3.54 billion.

Impairment loss on financial assets dropped to N21.5 million from N264.6 million and net cash from operating activities declined to N2.56 billion from N4.68 billion.

However, eTranzact’s operating profit recorded a positive of N3.12 billion from a positive of N1.6 billion in 2022. Interest income using the effective interest method increased to N94 million from a profit of N47.6 million in 2022 and the Interest expense using the effective interest method increased to N38.4 million from an expense of N29.8 million in 2022.

Net cash used in investing activities stood at N984 million from N504 million. Net cash generated from financing activities recorded a negative of N102.9 million from a positive of N5.59 billion.

Cash and cash equivalents at the end of the year increased to N2.76 billion from N1.28 billion.

eTransact International Plc is located at Victoria Island, Lagos. It sells, receives, and makes payments online, and makes bulk payments to employees and beneficiaries.

Read also: CAP’s full-year profit rises to N2.5bn, highest in 13 years

“In the ever-evolving landscape of online transactions, ensuring the security of digital payments has become a paramount concern. As individuals and businesses increasingly rely on online payment methods for their daily financial activities, the need for robust security measures has never been more critical,” the company said in a statement