A leading electric cable manufacturing company, CutixPlc, has posted a profit before-tax of N1.609bn for the financial year ending April 30, 2025, representing a marginal one per cent decline from the N1.619bn achieved in the previous year.
The company said while the profit remains solid, driven by strong revenue growth and right foundation, revenue for the year surged by 30 per cent to N15.7bn, up from N12.177bn in the previous year.
According to the company’s balance sheet, this revenue growth came with a sharp rise in cost of sales, which jumped 38.39 per cent to N12.5bn, compressing gross profit growth to just 3.63 per cent, at N3.2bn.
The Chairman, Board of Directors of the organisation, Ifeoma Nwahiri, disclosed this at the company’s 42nd Annual General Meeting held over the weekend, in Nnewi, Anambra State.
Nwahiri, said the bulk of this came from the sales of cables and wires, which generated N11.8 billion, while armored cables contributed N3.8 billion, with other product lines accounting for the remainder.
She commended the shareholders in their efforts at helping the company navigate the “tough economy” and coming out with success, hoping that the comoany would continue to navigate and give its shareholders the satisfaction they deserve.
She said, “Diversification is ongoing, but we have a lot of products we intend to drive into the market, we want to revive some products and also add some add-ons through outreach, that is what we hope to get out this year and into the future.
“To tackle the challenges facing the industry, so many decisions have to be made and you have to balance the decisions so no one affects the other. There are so much to take care of to ensure the company remains afloat, but it has to do with working together with the management and every team member.
“We rely on the right foundation, without the right foundation, the storms would have shut the company down, but the right foundation that was set has helped the company to ride on, all this while.
“It is a manufacturing outfit, so we already know the challenges facing the industry, but at Cutix, we focus on solutions, so for whatever situation we found ourselves, there is always an opportunity to do well in spite of that and that is what we like to focus on.
“We all know there are challenges, but what is important is how we are able to navigate through them and take advantage of those challenges, because sometimes there is an advantage of the opportunities there, but if you are not able to identify those opportunities, you will not be able to take advantage of it.”
According to her, there is a possibility that the world will one day stop using cables and as a result, cable companies should start looking at what the future brings, adding, “because technology is advancing very fast, so companies have to start looking at the future and position itself and be ready to take advantage of that future.
“Now, we have the fibre optics which is going to replace the cables, so, people should know that this is what is going to come up in the future, and prepare and bring in new product that will be able to match the future.
“What we are doing is to see how we can position ourselves even better and reintegrate backward to a point where it is not just about the cable, but about electrical energy. We learn from the situation and see how we can tap from it. Everybody knows that Cutix is a quality brand, but it is our responsibility to continue to communicate that value to the customers.”
She thanked the shareholders for their continued commitment and urged them to continue to promote the brand, reminding them that they are the owners of the company.
“The AGM comes once in a year, but the relationship is throughout the year. The shareholders should continue to promote the company. We have over 8,000 shareholders all over the country, if our shareholders speak for the country, the company can do better, they can always communicate to the company for any opportunity that the company can take advantage of.
“The federal and state governments should inward first and try and encourage local brands, before they try to bring in more foreign brands, when you show that you are looking after your own, others will believe and want to work with you.
“We are actively working to ensure a significant improvement in profitability in the next financial year. The increase in revenue indicates growing demand and deeper market penetration, while our ongoing focus on strategic investments is designed to enhance future profitability.
“Persistent inflammatory pressures, foreign exchange volatility for essential raw materials, high interest rates, delays in processing fotex through the CBN hindered production efficiency, rising energy costs and others continued to evert stress on manufacturing companies,” she added.
Nwahiri, however, said the period unfolded in a challenging landscape, marked by significant global and domestic economic developments that impacted business, but despite the headwinds, she said Cutix demonstrated remarkable resilience, navigating macroeconomics difficulties with strategic discipline, strong market positioning, operational strength, and the staff dedication.
