CWG Plc. Growth Trajectory Excites Shareholders
The Computer Warehouse Group (CWG) has once again demonstrated remarkable growth in its financial performance for the year ended December 31, 2024. In its Q4 consolidated financial statements, the company revealed a significant upturn across several key financial metrics, marking the company’s positive trajectory in a highly competitive business landscape.
CWG’s revenue for the year more than doubled from N24.53 billion in 2023 to N46.35 billion in 2024, reflecting an impressive growth of over 89%. This stellar increase in revenue highlights CWG’s resilience in capitalising on market opportunities and efficiently expanding its business operations.
The group’s strategy in diversifying its portfolio and strengthening its presence across key sectors has evidently played a vital role in driving this robust revenue performance.
CWG also saw a remarkable leap in its profitability, with Profit before Tax (PBT) increasing by over 290%, rising to N4.42 billion from N1.13 billion in the previous year. This exceptional growth in PBT demonstrates the company’s ability to scale operations and generate value.
Moreover, Profit After Tax (PAT) grew significantly from N576.08 thousand in 2023 to N3.04 billion in 2024, marking a strong recovery in the company’s profitability and enhancing its overall growth trajectory.
However, the financial statement also highlighted some challenges the group faced. The group recorded an impairment credit loss on its asset exposure, with notable impairments occurring in various categories.
The impairment losses were mainly attributed to a decline in cash and cash equivalents, which saw a reduction of N10.85 billion. Additionally, investments in subsidiaries were impaired by N13.02 billion, while there was a loss on financial assets measured at N265 million.
Similarly, trades and other receivables also saw a substantial decline, with impairments reaching N61.26 billion. Despite these impairments, the company continues to focus on strategic adjustments to manage these losses and optimise its asset portfolio for future profitability.
In terms of financial management, CWG experienced an increase in finance costs, which rose from N84.13 thousand in 2023 to N95.51 thousand in 2024.
While this represents a negative increase, the company showed resilience in offsetting this rise with improved finance income, which surged from N15.05 thousand in 2023 to N62.64 thousand in 2024. This increase in finance income underscores CWG’s effective management of its financial instruments and investments.
In a positive turn of events, CWG reported a modest improvement in foreign exchange gains, recovering from a loss of N182.03 thousand in 2023 to a gain of N16.74 thousand in 2024.
This positive movement highlights the company’s ability to navigate volatile currency markets and capitalise on favourable foreign exchange conditions.
The company’s administrative expenses saw an increase from N3.39 million in 2023 to N5.70 million in 2024, which is attributed to the expansion of operations and investments in infrastructure.
Despite the rise in administrative costs, CWG continues to focus on improving operational efficiency to maintain profitability while balancing growth-related expenses.
CWG reported an impressive increase in retained earnings, which rose to N3.44 million from N798.53 thousand in 2023. This growth in retained earnings highlights the company’s ability to generate value and reinvest in its operations for sustainable growth.
Additionally, the fair value reserve also increased to N26.61 thousand from N17.70 thousand, while the foreign transaction reserve improved to N1.90 million from N164.83 thousand. These figures underscore the company’s commitment to preserving and enhancing shareholder value.
The group’s total equity and liabilities grew significantly, increasing to N29.95 billion from N17.82 billion in the previous year. This growth in equity is a testament to the company’s strong financial foundation and its ability to raise capital effectively to fund expansion initiatives and strategic investments.
CWG’s trade and other receivables saw a healthy growth, rising from N11.69 billion in 2023 to N16.70 billion in 2024. Similarly, trade and other payables grew from N10.44 billion to N16.20 billion during the same period, reflecting an increase in business activity and corresponding financial obligations.
In addition to its financial success, CWG demonstrated a strong commitment to corporate social responsibility (CSR). The company made notable donations totaling N2.54 million to the MTN Foundation and the Lekki Phase 1 Community in 2024. This contribution highlights CWG’s dedication to supporting social initiatives and giving back to the communities in which it operates.
CWG’s earnings per share (EPS) saw a notable increase, rising to 121 kobo in 2024 from just 0.23 kobo in 2023. This sharp increase in EPS is indicative of the company’s strong profitability and the positive impact of its strategic initiatives.
Reflecting this growth, the board of directors declared a dividend of 39 kobo per share for the year, an increase from the 16 kobo paid in 2023. This dividend hike reflects the company’s solid financial position and its commitment to rewarding shareholders for their investment.
CWG’s Q4 consolidated financial results for the year ended December 31, 2024, reflect an outstanding performance in terms of revenue growth, profitability, and overall financial health. #CWG Plc. Growth Trajectory Excites Shareholders#
