Computer Warehouse Group (CWG) has once again demonstrated its strong market position and strategic resilience with an impressive unaudited financial result for the first quarter of 2025.
The company’s continued alignment with global technological advancements and the surging demand for artificial intelligence (AI) solutions played a central role in the substantial year-on-year growth reported during the review period.
CWG’s revenue for Q1 2025 surged to N15.32 billion, representing a remarkable 82.8% increase from the N8.38 billion recorded in the same quarter of 2024.
This performance reflects the company’s growing market share in Nigeria’s expanding tech ecosystem and its strategic investments in AI-driven products and enterprise solutions.
This growth in revenue was, however, met with a corresponding increase in the cost of sales, which climbed from N6.78 billion in Q1 2024 to N11.31 billion in Q1 2025.
Despite the rise in costs, CWG still managed to maintain a robust gross profit of N4.01 billion, showcasing operational efficiency and sustained profitability in a competitive industry landscape.
The group’s operating expenses grew significantly from N1 billion in Q1 2024 to N1.78 billion in the current period, indicative of its expanded operations, talent acquisition in tech development, and investments in AI infrastructure.
However, this increase in expenditure was effectively absorbed by the company’s higher gross earnings, reflecting prudent management and scale-driven margins.
CWG’s earnings before interest, taxes, depreciation, and amortization (EBITDA) rose sharply from N500 million to N2.31 billion, signaling healthy operational performance. The corresponding EBIT followed suit, climbing to N2.21 billion, reinforcing investor confidence and affirming the company’s growth trajectory.
While interest and finance charges rose marginally to N29.9 million from N23.7 million, this did little to dampen the company’s upward momentum. Profit Before Tax (PBT) grew significantly to N2.18 billion, while Profit After Tax (PAT) closed the quarter at a strong N1.48 billion, up from the previous year’s earnings and indicative of solid bottom-line performance.
One of the standout highlights of the Q1 2025 report was CWG’s effective management of debt. The company significantly reduced its loan liabilities from N3.19 billion in Q1 2024 to N736.3 million, an over 75% drop. This reflects deliberate cost containment and repayment strategies by management, contributing to a stronger balance sheet.
CWG’s retained earnings grew to N4.93 billion from N3.44 billion, further reinforcing its financial sustainability and capacity to reinvest in innovation and expansion. Although the foreign currency translation reserve slowed to N1.2 billion from N1.9 billion, it indicates a moderated impact from currency fluctuations, a testament to CWG’s diversified operational footprint.
The company’s total equity and liabilities rose from N29.95 billion to N36.87 billion, highlighting an improved asset base and increased stakeholder value.
CWG’s Q1 2025 financials paint a picture of a company deeply embedded in the ongoing digital transformation wave sweeping across Africa. With Nigeria’s tech sector witnessing unprecedented growth, CWG’s proactive positioning in AI, digital infrastructure, and enterprise IT services places it on a trajectory for sustained success.
Investors and stakeholders will be watching closely as CWG continues to innovate, streamline its operations, and leverage the power of AI to drive value creation. If the current momentum is maintained, CWG is poised to exceed expectations in subsequent quarters, solidifying its status as a market leader in Africa’s technology evolution.
Following the brilliant performance by CWG in spite of the macroeconomic environment, we are recommending a “BUY” forecast for investors looking at long-term growth and value creation. #CWG Powers Q1 Earnings with AI, Tech Solutions#
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