eTranzact records 88.2% YoY revenue growth, generates N8.3bn in Q3 2023
ETranzact International Plc reported a revenue of N8.3 billion in Q3 2023, marking an 88.2 percent year-on-year appreciation from the corresponding quarter in 2022.
According to the company’s financial results for the nine months ending September 2023, the company’s Q3 2023 revenue contributed to the nine months’ revenue of N25.7 billion, representing a year-on-year appreciation of 60.2 percent from the corresponding period in 2022.
In the third quarter of 2023, the company achieved significant growth in its financial performance compared to the same period in 2022.
The company’s revenue increased by 88.2 percent year-on-year, reaching N8.3 billion. This growth was driven by increased sales and improved market conditions.
However, the cost of sales also increased by 118.7 percent year-on-year, amounting to N6.4 billion. This increase in costs can be attributed to various factors such as higher raw material prices or increased production expenses.
Despite the higher costs, the company managed to maintain a gross profit of N1.9 billion, representing a 28.5 percent year-on-year increase. This indicates that the company was able to effectively manage its costs and maintain profitability.
The company’s selling and marketing costs also increased by 29.9 percent year-on-year, amounting to N67.3 million.
This increase can be attributed to higher marketing expenses or increased promotional activities to drive sales.Administrative expenses also rose by 41.0 percent year-on-year, reaching N1.3 billion.
This increase can be attributed to various factors such as higher employee salaries, increased rent expenses, or other administrative costs.Despite the increase in expenses, the company achieved an operating profit of N596.4 million, representing an 8.3 percent year-on-year increase.
The company’s pre-tax profit for the period was N729 million, representing a 21.1 percent year-on-year increase. This indicates that the company was able to generate higher profits before accounting for taxes.The company’s profit for the period was N510.3 million, representing a 24.6 percent year-on-year increase.
The company’s cash and cash equivalents increased by 14.7 percent year-to-date, reaching N10.8 billion. This indicates that the company has a strong cash position and can meet its short-term obligations.The company’s total assets increased by 8.3 percent year-to-date, reaching N19.2 billion. This indicates that the company’s overall financial position has improved.
The company recorded impressive revenue and profit growth during the quarter under review and during the nine months ending September 2023.
Despite operating in a rising interest rate environment, the company recorded a 2.3 percent year-on-year drop in its finance cost during the nine-month period.
The company also reported “fraud assets” as an allowance for the highly unrecoverable N3.82 billion proceeds from Smart Micro Systems Limited. The fraud case against Smart Micro Systems Limited traces back to 2018.
