eTranzact International Plc reported a mixed financial performance for the year ended December 31, 2025 with revenue rising modestly but profitability declining due to higher operating costs and tax expenses.
The company posted revenue of ₦30.61 billion in 2025, up from ₦29.90 billion recorded in 2024, representing a growth of approximately 2.4 percent.
The increase reflects sustained transaction volumes and service expansion across its electronic payment platforms.
Cost of sales declined from ₦18.54 billion in 2024 to ₦16.30 billion in 2025. This supported an improvement in gross profit, which rose to ₦14.31 billion from ₦11.36 billion in the previous year.
Gross margin strengthened as the company benefited from better cost efficiency at the direct cost level.
However, the gains at the gross level were offset by a sharp increase in operating expenses. Administrative expenses surged to ₦9.23 billion from ₦6.38 billion, while selling and marketing costs more than doubled to ₦930.85 million from ₦424.10 million.
The company also recorded a net impairment charge of ₦198.09 million compared to a reversal of ₦103.85 million in 2024.
As a result, operating profit declined to ₦3.95 billion from ₦4.66 billion, indicating pressure on operating margins despite improved gross performance.
Finance income rose slightly to ₦258.90 million, while finance costs declined to ₦10.26 million. Other income remained marginally negative at ₦1.24 million.
Profit before tax stood at ₦4.20 billion, down from ₦4.90 billion in 2024. Income tax expense increased to ₦1.73 billion from ₦1.50 billion, further weighing on bottom-line performance.
Consequently, profit after tax declined by 27.2 percent to ₦2.47 billion from ₦3.39 billion recorded in the previous year. Earnings per share also dropped to 27 kobo from 37 kobo.
From a balance sheet perspective, the company recorded substantial expansion in total assets, which nearly doubled to ₦46.14 billion from ₦24.00 billion in 2024.
The growth was largely driven by a sharp increase in cash and short-term deposits, which rose to ₦31.65 billion from ₦12.65 billion, indicating strong liquidity positioning.
Other assets also increased to ₦7.56 billion from ₦5.44 billion, while trade and other receivables rose to ₦995.52 million from ₦555.19 million. Inventories, however, declined to ₦1.76 billion from ₦2.21 billion.
Non-current assets grew to ₦4.18 billion from ₦3.15 billion, supported by increased investment in plant and equipment.
On the liabilities side, total liabilities surged to ₦29.95 billion from ₦9.13 billion, driven primarily by a significant rise in trade and other payables, which increased to ₦27.94 billion from ₦7.26 billion.
This indicates increased obligations tied to transaction volumes and operational scale.
Total equity rose modestly to ₦16.19 billion from ₦14.87 billion, supported by growth in retained earnings, which increased to ₦4.22 billion from ₦2.90 billion.
Overall, the 2025 financial performance of eTranzact highlights a company experiencing operational expansion and improved gross efficiency but facing pressure from rising administrative costs and tax obligations.
While liquidity remains strong and asset growth is robust, sustaining profitability will depend on cost control and improved operating efficiency in subsequent periods.
