CUTIX Plc, a renowned manufacturer and supplier of house wire cables and other electrical appliances, posted an increased revenue of N1.83 billion for Q2 2020 , +57.8%.

This is according to the firm’s recent financials sent to the Nigerian Stock Exchange, and seen by Nairametrics.

Key highlights for the Q2 2020

• Pre-tax profit leapt to N272.6 million, +277.52% Y-o-Y.
• Profit After tax also increased to N177.19 million, +277.5% Y-o-Y.
• Cost of sales increased to N1.35 billion, +57% Y-o-Y.
• Gross profit increased to N479.34 million, +57% Y-o-Y.
• Distribution costs declined to N37.5 million, -7.4% Y-o-Y.
• Administration expenses declined to N143.91 million, -8% Y-o-Y.
• Finance costs declined to N35.1million, -21.2% Y-o-Y.
• Income tax expense increased to N95.4 million, +277.515 Y-o-Y.
• Earnings per share massively gained 233.3% Y-o-Y, to finish at N10

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Bottom line

The firm posted growth in key financial metrics such as its revenue, PAT and PBT, amongst others, which indicates that it was able to manage its costs and maximize profit.

Nigerian Enamelware Plc, a Nigerian based manufacturing company, posted N56.6million profit in Q2 2020, up by +26.8% Y-o-Y.

This is according to its recent financials sent to the Nigerian Stock Exchange, and seen by Nairametrics.

Key highlights of its 2020 Q2 financials

• Revenue decreased to N93.3 million, -34.4% Y-o-Y.
• Pre-tax profit increased to N56.6 million, +26.8% Y-o-Y.
• Operating profit increased to N46.1 million, +20.2% Y-o-Y.
• Cost of sales declined to N129.8 million, -21.7% Y-o-Y.
• Administration expenses declined to N9.6 million, -35.2% Y-o-Y.
• Finance costs increased to N10.45 million, +67.03% Y-o-Y.
• Basic earnings per share increased to 74kobo.
• Property, plant and equipment marginally increased within the period under view to N892.9 million, +1.8% Y-o-Y.
• Total assets fell to N3.65 billion, -27.3% Y-o-Y. This is due to a massive decline in current assets within the period under view.

Bottom line

Despite recording lower revenue this year, when relatively compared with last year’s figures, the firm posted an increased profit before and after tax, due to its ability to efficiently manage costs.

This is reflected in the drastic reduction of cost items like cost of sales and administrative expenses, amongst others. All of these contributed in boosting the profit for the period under view.

In a renewed optimistic outlook, Cornerstone Insurance Plc has projected a rise in its Profit After Tax (PAT) figures to N537.4 million in the first Quarter of 2021 (Q1 2021), following a loss of N75.84 million it recorded in the third quarter of 2020 (Q3, 2020).

The disclosure is contained in a press release on the firm’s forecast, seen by Nairametrics.

Key highlights

The recent forecast for Q1 2021 when compared with the firm’s reported financial statements for Q3 2020 reveals:

• PAT is projected to hit N537.4 million in Q1 2021, +808.7%.
• Pre-tax profit is projected to hit N767.82 million from the loss of N94.3 million in Q3 2020, +914.3%.
• Net Earned premium in Q1, 2021 is expected to rise to N2.23 billion, up from N1.16 billion earned in Q3, 2020.
• Net claims incurred is expected to rise to N834.52 million, +18.4% when compared to Q3 2020 figures of N705 million.

Other key forecasts for Q1 2021 includes:

• Investment income expected to hit N432.7 million.
• Rise in Operating expenses to N901.5 million.
• Gross premium income projected at N6.2 billion.
• Commission incurred projected at N162.3 million.
• Net operating income expected to hit N1.8 billion.
• Taxation expected to be N230.3 million.
• Net cash generated from operating activities expected to hit N335.1 million.

Bottom line

The forecast is coming amid the negative impact of the coronavirus pandemic and the #EndSARS protests which negatively affected most businesses in Nigeria — a testament to this, is the dim in key financial metrics of the firm for Q3 2020.

A conservative forecast was expected by many, however, renewed optimism and news of the country exiting recession by the first quarter of 2021 could have influenced the positive outlook.