Cutix projects 9% profit growth in 2021

By Kayode Tokede

Cutix Plc has projected that in the fourth quarter of its financial year 2021, its revenue will double and profit will increase by nine per cent to N148 million.

These projections were made by the company in a recent earnings forecast issued by the Management, and signed by the Company’s CEO and CFO.

Key highlights of the earnings forecast for Q4 ended April 30, 2021 showed Revenue to increase to N1.66 billion, 100 per cent Quarter-on-Quarter  (Q-o-Q), while Cost of Sales to increase to N1.16 billion, 70per cent Q-o-Q.

The company’s forecasts distribution, Admin & Other expenses to increase to N232.89 million, 14 per cent Q-o-Q and Other Income to remain unchanged at N2.50 million.

Cutix also forecasted finance Charges to increase slightly to N47.38 million, three per cent Q-o-Q, Operating income to increase to N227.83 million, 14per cent Q-o-Q.

While Profit attributable shareholders is projected at N148.10 million.

The earnings forecast was made on the ground that the Nigerian economy will continue improve, as the country recovers from the impact of COVID-19. In this regard, revenue in the fourth quarter of 2021 will be slightly higher than the revenue projected in the third quarter of 2021.

However, the increase in the cost of sales driven by the input cost will pressure profitability to the tune of N148.10 million, which is 9% higher than the profit after tax made in the corresponding quarter of 2020.