Cutix Nigeria Plc reported a revenue of N5 billion in its financial statement for the year ended April 2020 down 7% from the N5.4 billion reported same period 2019. Cutix is into the manufacturing and marketing of electrical, automobile and telecommunication wires, cables, and related products. The company is also based in Nnewi, Anambra State.
A breakdown of the company’s sales reveals it sells most of its products locally with over 50% of its revenues coming from Nnewi a thriving commercial town in Anambra State, South Eastern Nigeria. According to an analysis of its revenue by geographical location it sells its products Aba, Abuja, Warri, Enugu, Lagos, Nnewi, Port Harcourt, and Uyo.
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Cutix makes Cables & Wires, Metal Product & Sales, Armoured Cable sales. Cables & Wire sales make up between 65% and 75% of revenue depending on the performance of its armoured cable and wire business. During the year under review it reported a revenue of N3.7 billion from cables & wires and N3.6 billion in 2019. Its metal products & sales is nearly non-existent.
Cutix makes a huge chunk of its revenues from Nnewi where it is located. According to data from 2020 results, it earned N2.8 billion from its Nnewi operations. It also earns another one billion combined from Port Harcourt and Abuja with N529.3 million and N582 million respectively. In 2018 Cutix recorded over N3 billion in sales from Nnewi alone.
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See breakdown from other states;
- Aba – N224,3 million
- Abuja – N582 million
- Enugu – N221.3 million
- Lagos – N223.25 million
- Nnewi – N2.88 billion
- Port Harcourt – N529.3 million
- Uyo – N358.8 million
Nairametrics understands most of the products manufactured in Nnewi are also exported outside Nigeria by several wholesale and retain distributors who are mostly from the same town. This may have also contributed to the huge sales figure from Nnewi compared to other cities where it makes money from. Cutix did not report any direct sale to the Northern Parts of Nigeria. The company has over 18 major distributors with most of them located in the South East and Niger Delta areas. However, its distributors located in Jos and Katsina service its Northern customers.
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Why this matters: The bustling town of Nnewi is often referred to as the spare parts capital of Nigeria. The town boast of one the largest markets for trading of vehicle spare parts and electronics serving the entire eastern part of the country and the Niger Delta. Cutix over N3 billion per annum sales in Nnewi provides a useful insight into how big the Nnewi Market is as a major industrial hub in Nigeria.
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Cutix reported that it expects a revenue of N1.67 billion when it publishes its second quarter results. It also expects to post a pre-tax profit of N229.5 million. The company says its second quarter revenue will beat its first quarter results. Its share price has risen by 37% year to date and is one of the best performers this year.
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