ETranzact International Plc, a banking and payment services company said first quarter profit climbed 91.06 percent.
Profit was N168.13 million in 2015, compared with N88.06 million the previous year, the Lagos-based company said in an e-mailed statement on the Website of the NSE.
Sales increased 29.37 percent to N2.07 billion as cost of sales increased by 20 percent to N1.50 billion.
ETranzact’s cost of sales margin reduced to 55.55 percent in 2015 from 78.13 percent last year. This means the company is spending less to produce to produce each unit of products.
Gross profit increased by 59 percent to N567.09 million compared with N356.66 million the previous year. Gross profit margin moved to 27.40 percent in 2015 as against 22.067 percent last year.
The improved margins means the company is efficient in managing direct costs attributable to projects.
Net margin, measure of profitability and efficiency jumped to 8.12 percent in 2015 as against 5.47 percent in 2014.
ETranZact has partnered MasterCard, a technology company in the global payments industry to make international remittance services available to millions of consumers in Nigeria.
Under the agreement, citizens will be able to securely receive international remittances into their eTranzact mobile money wallets or select bank accounts through the international transfer hub, Home Send.
ETranzact, which is connected to and switches transactions for all of Nigeria’s major commercial banks, will also enable millions of consumers to receive remittances directly into their bank accounts.
The company has uitilized the resources of its owners in generating higher profit as return on equity (ROE) increased to 5.33 percent in 2015 as against 2.94 percent the previous. Total assets rose by 3.66 percent to N4.84 billion.
ETranzact share price closed at N3.30 on the floor of the exchange while market capitalization was N14.02 billion.
BALA AUGIE
