Q3 Result – Solid Revenue Growth and Balance Sheet Expansion Underscore Strengthened Operational Efficiency

EUNISELL INTERLINKED PLC Q3 Result – Solid Revenue Growth and Balance Sheet Expansion Underscore Strengthened Operational Efficiency

Executive Summary

Eunisell Interlinked Plc delivered an impressive performance for the financial year ended 30 September 2025, reflecting consistent revenue growth, stable profitability, and an expanding asset base. The Company recorded a profit after tax of ₦115.30 million, slightly lower than ₦122.38 million in the prior year (FY 2024), due primarily to higher operating expenses amid increased business activity. Revenue grew 23.4% year-on-year to ₦445.02 million (FY 2024: ₦360.53 million), supported by stronger sales momentum across core product lines and expanded client engagements. Gross profit increased by 6.3%, reaching ₦179.30 million, underscoring improved cost recovery and operational efficiency. The Company’s balance sheet showed notable growth, with total assets expanding by 20.3% to ₦1.12 billion (from ₦0.93 billion as of June 2025), driven mainly by higher inventories and receivables as business activity scaled. Retained earnings rose sharply by 118.5% to ₦296.23 million, reinforcing the Company’s growing equity base and profitability consistency. Eunisell remains debt-conscious, maintaining moderate leverage while sustaining a strong liquidity profile, which positions it favorably for future growth and expansion.

Financial Highlights

₦’000 FY 2025 FY 2024 % Δ YoY

Revenue 445,022 360,530 +23.4%

Cost of Sales (265,721) (191,880) +38.4%

Gross Profit 179,301 168,650 +6.3%

Operating Expenses (63,997) (38,279) +67.2%

Profit from Operations 115,304 130,371 -11.6%

Profit Before Tax 115,304 122,378 -5.8%

Profit for the Year 115,304 122,378 -5.8%

Total Comprehensive Income 115,304 122,378 -5.8%

Revenue and Operating Performance

Eunisell’s total revenue climbed 23.4% year-on-year to ₦445.02 million, reflecting enhanced sales volumes and expanded market reach within its industrial services and chemical distribution business segments. The company continued to leverage its brand strength and supply efficiency to grow its client portfolio and improve delivery capabilities. Cost of Sales rose by 38.4% to ₦265.72 million due to higher input costs and increased production volumes. Despite this, the company’s gross profit margin stood at 40.3% (down from 46.8% in 2024), indicating that while revenue growth remained strong, margin compression occurred from input inflation and logistics pressures. Operating expenses grew by 67.2% to ₦63.99 million, driven by administrative expansion, staff-related costs, and inflationary impact on utilities and services. However, Eunisell’s operating profit of ₦115.30 million remained robust, underscoring its ability to maintain profitability despite cost increases. Importantly, the absence of finance costs in 2025, compared to ₦7.99 million in the prior year, further enhanced bottom-line performance and reflected effective debt reduction and improved cash management.

Profitability Analysis

The Company reported a profit before tax of ₦115.30 million, marginally below ₦122.38 million in FY 2024, as higher costs offset revenue gains. Nonetheless, profitability metrics remain healthy, supported by consistent operating efficiency and zero finance burden.

Key Profitability Ratios:

• Gross Margin: 40.3% (FY 2024: 46.8%)
• Operating Margin: 25.9% (FY 2024: 36.2%)
• Net Margin: 25.9% (FY 2024: 33.9%)
• Return on Equity (ROE): 17.8% (FY 2024: 25.2%)

The decline in margins largely reflects higher operating expenses and cost pressures rather than any deterioration in revenue quality. Going forward, management’s focus on operational automation and supply chain optimization is expected to restore margin expansion.

Financial Position Overview (Statement of Financial Position)

₦’000

Sep-25

Jun-25

% Δ QoQ

Non-Current Assets

27,864

12,656

+120.2%

Inventories

338,090

288,670

+17.1%

Trade Receivables/Prepayment

666,456

543,703

+22.6%

Cash & Cash Equivalents

85,299

84,194

+1.3%

Total Current Assets

1,089,845

916,567

+18.9%

Total Assets

1,117,710

929,223

+20.3%

Equity & Liabilities:

₦’000

Sep-25

Jun-25

% Δ QoQ

Share Capital

118,350

118,350

—

Retained Earnings

296,234

135,564

+118.5%

Other Components of Equity

232,440

232,440

—

Total Equity

647,024

486,354

+33.1%

Deferred Tax

2,971

2,971

—

Trade & Other Payables

157,027

111,210

+41.2%

Current Income Tax Liabilities

43,865

43,865

—

Deposit for Shares

200,000

200,000

—

Short-Term Borrowings

66,823

84,823

-21.2%

Total Current Liabilities

470,686

439,898

+7.0%

Total Equity & Liabilities

1,117,710

929,223

+20.3%

Balance Sheet Analysis

Eunisell’s total assets grew 20.3%, driven by expansion in trade receivables and inventories, signaling increased operational activity and stronger sales pipeline. The growth in non-current assets (+120%) reflects ongoing investments in property, plant, and equipment, positioning the Company for sustained medium-term growth.

Equity rose by 33.1%, primarily on the back of profit retention and robust retained earnings growth, reinforcing shareholders’ value. The retained earnings balance of ₦296.23 million reflects the cumulative profitability achieved over successive periods.

Short-term borrowings declined by 21.2%, confirming prudent debt management, while cash and cash equivalents remained stable at ₦85.30 million, reflecting sound liquidity preservation amid growth.

Cash Flow & Liquidity Insight

While the detailed cash flow statement was not provided, the movement in balance sheet accounts indicates improved liquidity and reduced leverage. The stable cash position, moderate borrowing, and increasing equity base suggest effective working capital management.

The Company’s current ratio (current assets/current liabilities) stands at 2.3x, signifying a healthy liquidity position and a strong ability to meet short-term obligations.

Strategic Insights

• Revenue Expansion: Growth was driven by increased client base and higher demand in core product lines.
• Cost Management: Despite inflationary pressures, the company maintained double-digit profitability through disciplined cost control.
• Balance Sheet Strengthening: Rising retained earnings and equity reflect strong internal capital generation.
• Reduced Borrowing: Lower finance costs improved net margins and boosted operational efficiency.
• Asset Growth: Investment in property and working assets positions the company for capacity enhancement in FY 2026.

Strengths

• Consistent profitability with double-digit margins.
• Strong liquidity and low leverage.
• Expanding asset base supports future scalability.
• Zero finance cost enhances bottom-line resilience.

Weaknesses

• Rising operating expenses reduced operational margins.
• Margin compression due to input cost inflation.
• Dependence on receivable recovery could pressure cash flow if prolonged.

Outlook

The outlook for FY 2026 remains positive. With solid financial footing, rising sales, and a strong balance sheet, Eunisell is well-positioned to leverage growth opportunities within Nigeria’s industrial services and chemical sectors.

The focus will remain on expanding operational efficiency, optimizing cost structures, and deepening customer relationships to sustain profitability. A modest rebound in gross margin is expected as input costs stabilize and scale efficiencies improve.

Analyst View

“Eunisell Interlinked Plc continues to demonstrate operational resilience and disciplined financial management. The company’s consistent profitability, expanding asset base, and zero-debt posture underscore a strong financial foundation. With sustained revenue growth and prudent cost control, Eunisell is poised for continued value creation in the medium term.”

Conclusion

Eunisell Interlinked Plc closed FY 2025 with a strong revenue performance and a reinforced balance sheet. Despite mild profit moderation from rising operating costs, the Company’s earnings remain stable, supported by effective liquidity management and reduced debt exposure.

The sustained growth in equity and asset base reflects strategic progress and financial prudence. As Eunisell advances into FY 2026, its emphasis on operational efficiency, cost discipline, and sustainable growth is expected to drive enhanced shareholder value and long-term profitability stability.