Cutix faced mounting pressure as rising borrowing costs weakened profitability during FY 2026 operations significantly.
Cutix Finance Cost Pressure
The company reported a ₦47.90 million pre-tax loss after recording ₦1.62 billion profit previously.
Cutix disclosed the figures through unaudited financial statements and submitted them recently to the Nigerian Exchange platform.
Revenue declined 6.35% to ₦14.77 billion from ₦15.77 billion recorded during FY 2025 operations previously.
However, despite weaker sales, the company improved gross margin slightly from 19.17% to 19.61% during FY 2026.
Operating Profit Decline
Meanwhile, administrative expenses increased sharply while selling and distribution costs surged across business operations significantly.
Consequently, operating profit dropped 38.44% to ₦930.29 million compared with stronger previous financial performance levels.
Most importantly, finance costs created major pressure after interest expenses surged 170.68% throughout the financial reporting period.
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Interest expenses reached ₦1.04 billion and exceeded operating profit for the first time in company history.
Balance Sheet Concerns
As a result, Cutix lost profitability despite maintaining stable production activities throughout FY 2026 operations nationwide.
Additionally, borrowings increased 27.57% to ₦2.77 billion and raised refinancing concerns among investors and analysts significantly.
Meanwhile, retained earnings declined into negative territory and reflected worsening financial pressure across company operations recently.
Earlier, investors expressed concerns before management released the disappointing FY 2026 financial performance figures publicly.
Therefore, Cutix shares remained unchanged despite stronger gains across Nigeria’s broader stock market throughout 2026.
