Managing director and chief executive officer of Cutix Plc, Mrs. Ijeoma Oduonye, has said, the company has proven to be the best-kept secret stock of the Nigerian stock market and a must have in every investment portfolio because of its remarkable performance and returns to shareholders over the years.
Oduonye declared this, while speaking on the company’s performance at the Facts Behind the Figures programme on the Nigerian Exchange (NGX) Limited as part of activities to mark the 40th anniversary celebration of the company.
She described Cutix as a quintessential stock and the best example of a well-managed indigenous company in Nigeria as its performance history showed that it outperformed the overall NGX market in return by over seven times.
The company made returns on investment of 185,000 percent compared to the Nigerian All-share index of 22,870 percent.She said the company was able to achieve this remarkable performance despite the turbulent macroeconomic environment, influx of sub-standard cables and wires, unavailability of forex, unfriendly government policies, multiplicity of taxes, port congestion and dearth of qualified technical manpower.
She explained that the company’s annual profit after tax has increased consistently over the years as well as the value of annual dividends received by investors, adding that, the company has also declared bonus issues almost every three years in the ratio of one for one, one for two, and one for three and with most of the declarations being one for one.
Oduonye remarked that dividends have been declared every year since 1989 till date, consequently, N1,040 invested on behalf of a new baby 35 years ago would have grown to N1.925 million today and N5,200 invested by a youth corps member 35 years ago would have appreciated to the value of N9.625 million presently.
“In the same vein, a businessman who had invested N520,000 in the stocks of Cutix 35 years ago would have had his investment appreciated to the tune of N962.525 million presently,” she explained.
She said the company’s revenue grew from N3.2 billion in 1987 to N30 billion in 2022 while its profit before tax appreciated from N111 million to N3.996 billion in 2022, adding that in the same manner, gross dividends rose from N2.9 million in 1992 to N1.215 billion in 2022.
The company has projected revenue of N12 billion for 2023, N15.6 billion for 2024 and N20.3 billion for 2025 and PBT of N2.1 billion for 2023, N2.8 billion for 2024 and N3.650 billion for 2025.