Cutix Swings Back to Profit as Revenue Climbs 5%

Cutix Plc returned to profitability in the first quarter of its 2027 financial year, as revenue increased by five percent to N3.70 billion, according to the company’s unaudited financial statements.

The cable and wire manufacturer recorded a profit after tax of N58.3 million for the three months ended July 31, 2026, compared with a N105.8 million loss in the corresponding period of 2025.

Revenue rose from N3.52 billion in the same period last year, while profit before tax moved to N88.4 million, compared with a loss before tax of N89.4 million a year earlier.

The improved performance came despite continued pressure from financing costs. Cutix’s finance cost declined to N169.7 million from N190.8 million in the comparable period, while operating profit increased to N196.6 million from N100.3 million.

Gross profit also increased to N548.3 million, compared with N526.7 million recorded in the first quarter of 2026.

The company further recorded N61.4 million in other income, up sharply from N1.1 million in the corresponding period.

Cutix generated N2.94 billion from cables and wire sales, up from N2.53 billion a year earlier. Revenue from metal products also increased to N223.1 million from N122.9 million.

However, armoured cable sales declined to N538.3 million, compared with N753.9 million in the corresponding period of 2025.

Cutix’s cost of sales increased to N3.16 billion from N3.00 billion, with raw material costs accounting for N2.72 billion during the period.

Despite the increase in production costs, the company improved its gross profit as revenue growth outpaced the increase in cost of sales.

Selling and distribution expenses fell to N51.5 million from N107.1 million, while administrative expenses declined to N300.2 million from N319.3 million.

The combination of stronger revenue and lower operating expenses helped lift operating profit to N196.6 million from N100.3 million.

However, Cutix’s balance sheet remained smaller than it was a year earlier.

Total assets declined by 40 percent to N6.37 billion, from N10.67 billion, while total liabilities fell by 58 percent to N2.80 billion.

Inventories stood at N3.30 billion, while trade and other receivables amounted to N478.2 million. Cash and bank balances stood at N183.9 million at the end of the quarter.

The result marked a reversal from Cutix’s difficult 2026 financial year, when the company recorded a N47.9 million pre-tax loss amid a sharp rise in finance costs.