eTranzact Declares N1.15bn Final Dividend Amid Profit Pressure

eTranzact International Plc has announced a proposed final dividend of N1.15 billion for the financial year ended December 31, 2025, even as the company recorded a decline in earnings.

The payout translates to 12.5 kobo per share and was disclosed in a corporate action filing submitted to the Nigerian Exchange (NGX). Shareholders eligible for the dividend are those listed in the company’s register by July 6, 2026.

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According to the filing, the register of members will be closed from July 7 to July 22, 2026, while payment is scheduled for July 23, 2026, subject to withholding tax and shareholder approval at the company’s Annual General Meeting.

The firm noted that dividend payments will be made electronically to investors who have completed their e-dividend registration. Payments will be processed through its registrar, Meristem Registrars Limited. Shareholders yet to enrol in the e-dividend system have been urged to do so to facilitate seamless payment.

Despite the dividend declaration, the company’s financial performance reflected mixed outcomes. Revenue posted a marginal growth of 1.08 per cent year-on-year to N29.8 billion.

However, profit before tax fell by 16.3 per cent to N4.2 billion, compared to N5.02 billion recorded in the previous year, highlighting mounting cost pressures.

Cost of sales declined significantly by 13.8 per cent to N15.6 billion, which supported a strong 24.48 per cent rise in gross profit to N14.1 billion. This improvement, however, was overshadowed by a steep increase in administrative expenses, which surged by over 50 per cent to N9.2 billion.

As a result, operating profit dropped to N4.0 billion from N4.8 billion in the prior year, reflecting the impact of higher operating costs on overall profitability. Investment income recorded a modest increase of 6.58 per cent to N258.8 million but was insufficient to offset the broader cost escalation.

Market Performance

In the equities market, the company’s share price remained unchanged at N20.15 at the close of trading on April 1, indicating a muted investor response to the earnings and dividend announcement.

Nevertheless, the stock has delivered strong year-to-date gains of 77.5 per cent, rising from its opening price of N11.35 at the start of the year.

With 9.2 billion shares outstanding and a market capitalisation of approximately N185 billion, eTranzact currently ranks 47th on the NGX, accounting for about 0.14 per cent of the total market value.