[upme_private]PZ Cussons Nigeria Plc released its 2013 FY results showing revenue remained flat at N71.3billion (2012 FY: N72.1billion). Gross Profit however rose 21.2% to N19billion (2012 FY: N15.7billion). Operating profit also rose two-thrids to N7.1billion (2012 FY: N4.4billion) as operating expenses remained largely stable. Profit after tax at the end of the period doubled to N4.8billion in comparison to the prior year.
Key Highlights
- Revenue was flat for the year dropping 1.1% when compared to the prior year.
- The drop in revenue growth is the first since 2010.
- This revenue growth may not be unconnected with the intense competition in the FMGC industry. I also suspect the White Goods segment experienced similar drop in revenues as consumers become more cautious with their spending.
- Despite challenges in revenue the company increased profitability by 100%. This was possible only because the company held cost of sales at 74% of Revenues compared to 80% in 2012. This rise in efficiency helped push Gross Profit margins by 22% when compared to the prior year.
- This is remarkable considering that Cost of sale rose 18% between 2012 and 2011 which helped lower profit after tax by 55% at the end of the period.
- Rising Operating expenses was also kept low at 5% higher than in 2012. In fact operating expenses was only 62.5% of Gross Profit compared to 72% a year earlier. This helped propel operating profit by 63% when compared to the same period last year
- PZ carried no debt and as such earned an incremental income of N230million from financial instruments and N264million from other sources of income.
- PZ Currently trades at N37.6 and trades an a price earnings multiple of N30.6
Expect more analysis and insights as to how they were able to manage cost when they release their 2013 Annual report.
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PZ Cussons released its 2013 FY to June results in the website of the NSE[/upme_private]
