Computer Warehouse Group Plc (CWG) Experiences Remarkable Financial Growth in Q1 2025
Computer Warehouse Group Plc (CWG), a prominent player in the Nigerian technology and ICT services landscape, has announced exceptional financial results for the first quarter ended March 31, 2025. The company reported a remarkable surge in profitability and revenue, demonstrating its strong market position and effective business strategies. This impressive performance builds upon the company’s already strong performance in the 2024 fiscal year, where it achieved a near doubling of revenue, further solidifying its growth trajectory.
The company’s unaudited financial statement, filed with the Nigerian Exchange, reveals a profit after tax of N1.48 billion for Q1 2025. This represents a staggering 368% increase compared to the N316.1 million recorded in the corresponding period of 2024. This significant leap in profitability underscores CWG’s success in capitalizing on the burgeoning demand for technology solutions within Nigeria’s dynamic market. The company’s strategic focus on providing cutting-edge technology and ICT services has demonstrably resonated with clients, translating into robust financial gains.
Fueling this profit surge was an 83% year-on-year increase in revenue, which reached N15.32 billion in Q1 2025, compared to N8.38 billion in Q1 2024. This impressive revenue growth is attributed to the amplified demand for CWG’s diverse offerings across various operational segments. The company’s ability to effectively cater to the evolving technological needs of its clients has played a pivotal role in driving this top-line expansion. The impressive growth in both revenue and profitability paints a picture of a company effectively leveraging market opportunities and executing its strategic vision.
While CWG experienced an expected increase in cost of sales, rising to N11.31 billion in Q1 2025 from N6.87 billion in Q1 2024, the company maintained a healthy gross profit margin. Despite the higher cost of sales, the gross profit more than doubled, reaching N4.01 billion compared to N1.51 billion in the same period last year. This demonstrates the company’s ability to effectively manage costs while delivering valuable services that command premium pricing. The significant growth in gross profit further contributes to the overall improvement in profitability.
Analyzing the components of CWG’s financial performance, operating expenses saw an increase to N1.78 billion from N1.01 billion. However, this rise was offset by a substantial jump in other income, which reached N70.17 million compared to a modest N331,000 in Q1 2024. The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) witnessed a significant improvement, reaching N2.3 billion in Q1 2025 compared to N500.5 million in the same period of the previous year. This growth in EBITDA underscores the company’s enhanced operational efficiency and its ability to generate strong cash flows from its core business activities.
CWG’s robust financial performance is further reflected in its pre-tax profit, which soared by 423% to N2.18 billion in Q1 2025, compared to N415.9 million in Q1 2024. While tax expenses also increased, reaching N696.9 million from N99.8 million, the overall impact on profitability remained positive. The substantial growth in pre-tax profit highlights the effectiveness of CWG’s business strategies and its ability to convert revenue growth into tangible bottom-line improvements. This consistent performance across key financial metrics underscores the company’s strong financial health and its potential for sustained growth.
