Cutix Plc has reported a pre-tax loss of N47.90 million for the full year ended April 30, 2026. This marks a significant downturn from a pre-tax profit of N1.62 billion recorded in the corresponding period of 2025.

The company's unaudited financial statements for the year ended April 30, 2026, filed on the Nigerian Exchange, indicate that a 170.68% surge in finance costs overwhelmed operating income. This increase in finance costs eroded profitability, leading to the loss position despite a marginal improvement in the gross margin.

Revenue declined by 6.35% to N14.77 billion from N15.77 billion in FY 2025. This weaker topline performance occurred despite continued activity in its cables, wires, and related products segment.

A tripling of finance costs to N1.04 billion from N383.24 million was the primary driver of the loss. Interest charges exceeded operating profit of N930.29 million for the first time, resulting in negative retained earnings at year-end.

Key highlights (FY 2026 vs FY 2025):

• Revenue: N14.77 billion, down 6.35% YoY
• Cost of sales: N11.88 billion, down 6.86% YoY
• Gross profit: N2.90 billion, down 4.22% YoY
• Gross margin: 19.61%, up from 19.17% YoY
• Administrative expenses: N1.51 billion, up 21.97% YoY
• Selling & distribution expenses: N451.37 million, up 66.62% YoY
• Operating profit: N930.29 million, down 38.44% YoY
• Finance cost: N1.04 billion, up 170.68% YoY
• Pre-tax profit/loss: -N47.90 million, down from +N1.62 billion YoY
• EPS: -0.68 kobo, from 15.98 kobo YoY
• Total assets: N7.48 billion, down 14.12% YoY
• Total liabilities: N3.95 billion, up 3.83% YoY
• Equity attributable to shareholders: N3.52 billion, down 28.08% YoY
• Retained earnings: -N25.98 million, from +N1.37 billion YoY
• Borrowings: N2.77 billion, up 27.57% YoY

The company's cost of sales declined by 6.86% to N11.88 billion, largely in line with the revenue decrease. Consequently, gross profit fell by 4.22% to N2.90 billion, with the gross margin seeing a slight improvement to 19.61% from 19.17%.

Operating expenses saw an increase, with administrative expenses rising 21.97% to N1.51 billion and selling and distribution costs surging 66.62% to N451.37 million.