Infostride News reported that eTranzact International Plc has posted robust financial figures for the third quarter of 2023, showcasing significant growth in revenue and profitability. The company’s Q3 2023 revenue stood at N8.3 billion, reflecting an impressive 88.2% year-on-year increase compared to the corresponding quarter in 2022.
In its financial report covering the nine months ending September 2023, eTranzact disclosed that the Q3 2023 revenue contributed to a cumulative nine-month revenue of N25.7 billion. This nine-month figure represents a substantial year-on-year growth of 60.2% from the same period in 2022.
A notable highlight in eTranzact’s performance is the pre-tax profit of N729 million recorded in Q3 2023, marking a notable 21.1% year-on-year increase from Q3 2022.
Let’s delve into key financial indicators for a detailed analysis of eTranzact’s performance in Q3 2023 compared to Q3 2022:
– **Revenue**: The company’s revenue for Q3 2023 reached N8.3 billion, demonstrating an outstanding 88.2% year-on-year growth.
– **Cost of Sales**: The cost of sales increased to N6.4 billion, reflecting a significant 118.7% year-on-year surge.
– **Gross Profit**: Despite increased costs, eTranzact maintained a gross profit of N1.9 billion, indicating a respectable 28.5% year-on-year growth.
– **Selling and Marketing Costs**: The company reported N67.3 million in selling and marketing costs, representing a 29.9% year-on-year increase.
– **Administrative Expenses**: Administrative expenses amounted to N1.3 billion, reflecting a 41.0% year-on-year rise.
– **Operating Profit**: eTranzact achieved an operating profit of N596.4 million, demonstrating an 8.3% year-on-year increase.
– **Profit Before Tax**: The pre-tax profit for Q3 2023 stood at N729 million, marking a notable 21.1% year-on-year growth.
– **Profit for the Period**: eTranzact reported a profit of N510.3 million for the period, showcasing a 24.6% year-on-year increase.
– **Cash and Cash Equivalents**: The company maintained N10.8 billion in cash and cash equivalents, reflecting a 14.7% year-to-date increase.
– **Total Assets**: eTranzact’s total assets reached N19.2 billion, indicating an 8.3% year-to-date growth.
**Insights:**
The financial report provides insights into eTranzact’s impressive revenue and profit growth during the reviewed quarter and the nine months ending September 2023. Notably, the company’s ability to achieve such significant growth in a rising interest rate environment is commendable.
Despite challenges, eTranzact managed to decrease its finance cost by 2.3% year-on-year during the nine-month period. This demonstrates the company’s efficiency in managing its financial resources even in a challenging economic environment.
It’s worth noting that the financial report also highlights a provision for “fraud assets” amounting to N3.82 billion, related to the unrecoverable proceeds from Smart Micro Systems Limited. The fraud case against Smart Micro Systems Limited dates back to 2018, emphasizing the challenges companies face in dealing with fraud-related issues.
In conclusion, eTranzact’s financial performance in Q3 2023 reflects resilience and strategic management, positioning the company for sustained growth. The ability to navigate challenges, coupled with the commendable growth in revenue and profitability, indicates a positive trajectory for eTranzact in the dynamic business landscape.
Disclaimer: The information provided is based on the financial report released by eTranzact International Plc and is for informational purposes only. Infostride News does not endorse or guarantee the accuracy
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