eTranzact International: Gains momentum across all financial parameters
By Philemon Adedeji
International Plc for half year (H1) unaudited results ended June 30, 2022, continued its growth momentum from an impressive result recorded in the first quarter Q1 of 2022.
The technology company in Nigeria, offering services for electronic transaction switching and payment processing for H1 2022 recorded a slight increase in revenue among other parameters.
First to experience a increase was the company’s revenue that grew by four per cent to N11.6billion in H1 2022 from N11.2billion reported in H1 2021.
However, eTranzact lnternational Profit Before Tax (PBT) recorded for the period increased by 586.4 per cent from N87.6 million reported in H1 2021 to N601.2 million generated in H1 2022.
Profit After Tax (PAT) for a period also emerged strongly to a 581.3 per cent from N59.6 million in H1 2021 to N408.8 million in H1 2022.
In addition, eTranzact international reported its operating profit which gained 1535 per cent to N476.6 million in H1 2022 from N29.1 million achieved in H1 2021.
Meanwhile, total assets for the year stood at N17.1 billion as of June 30, 2022 from N10.9 billion reported in financial year end of December 31, 2021, representing an improvement of 56.6 per cent.
The key highlights of the financial statement under total assets revealed property, plant and equipments which gained a 5.8 per cent to N835.1 million in H1 2022 from N789.1 million as of December 31, 2021.
Other key highlights of the financial statement include intangible asset which declined by 16.7 per cent to N124.3 million as of June 30 2022 from N149.3 million reported in December 31, 2021
The unaudited result H1 2022 financial results submitted to the Nigerian Exchange Limited (NGX) showed that the group liabilities gained a 0.69 per cent to N8.556 billion in as of June 30, 2022 from N8.497 billion generated 2021 financial year, amid 1.2 per cent increase in total current liabilities to N8.116 billion as of June 30, 2022 from N8.021 billion as of end of December 31, 2021.
In addition, the group total equity recorded for the period gained a 253.6 per cent to N8.535 billion as of June 30, 2022 from N2.413 billion accounted as of end of December 31, 2021.
Profitability Ratios
At a look in the analysis, the technology company recorded profitability for the half year 2022 unaudited financial results.
However, when comparing with the prior-year result, almost all the parameters are in upward performance. First to achieve profit margin of the company, appreciating to 5.2 per cent in H1 2022 from 0.78 per cent as of end of December 2021.
This simply means for every N100 earned by the company in the course of the year, N5.20 of it can be translated in to profit, higher than N0.78 achieved in the preceding year.
Also, Return on assets (ROA),Return on Assets increased further to 3.5 per cent in H1 2022 from 0.8 per cent as of December 2021. Analysis shows that for every N100 worth of assets employed by the company in the course of 2021 could only contribute N3.50 to the profit before tax.
For the half year results of 2022, eTranzact International, deployed equity value at N8.5 billion and for every N100 equity deployed, the company made Profit After Tax (PAT) of N4.80 more better than and as compared to Profit After Tax of N2.50 in the preceding year.
Commenting on the results, the Chairman of eTranzact International, said the global economic expansion has continued in a moderating pace in 2022 alongside a transition from COVID-19 pandemic to endemic, war and unrest in Ukraine has triggered a costly humanitarian crisis that demand a peaceful resolution.
The economy is expected to sustain positive trajectory in 2022. This is predicated on growth of manufacturing activities, real sector and impact of the Central Bank of Nigeria’s interventions on growth-enhancing sectors.
