PZ Cussons (Nigeria)’s results for the 9 months ended February 2018 show that revenue increased from N57.1 billion in 2017 to N63.2 billion in 2018. Profit before tax fell from N2.3 billion in 2017 to N1.9 billion in 2018. Profit after tax also dropped from N1.6 billion in 2017 to N1.3 billion in 2018.
Profit margins for PZ Nigeria have shown a marked decline for the comparative period from 9M 2016 to 9M 2018. Net profit margin declined from 3% in 2016 to 2.1% in 2018. Net profit margin is the percentage of revenue left, after all expenses have been deducted from sales.
Earnings per share has also declined from N0.40 in 2016 to N0.34 in 2018.
The last few years have been tough
FMCG’s have had to face a difficult climate in the last few years. A sharp drop in crude oil revenues precipitated a foreign exchange crisis and pushed the country into recession. The sharp devaluation led to many of the firms recording losses, and having to rely on parent companies for foreign exchange.
While growth has since recovered, consumer spending remains weak and many firms were unable to pass along the added costs to them.
PZ, from precedence, will release its financial statements sometime in September. Full year results for the period ended May 2017 were released in September 2017.
About the company
PZ Cussons Nigeria Plc was incorporated on December 4, 1948 under the name, PB Nicholas and Sons Limited. The company’s name was changed to Alagbon Industries in 1953, then Associated Industries in 1956.
The company went public and was listed on the Nigerian Stock Exchange in 1972. It adopted the name, Paterson Zochonis Industries on 24th November, 1976 and became a plc on 22nd September, 1990. It adopted its current name on 22nd September, 2006.
The company is into the sales, manufacture and distribution of consumer goods and home appliances. Popular brands include Morning Fresh washing liquid, Mamador cooking oil, Joy soap and Olympic milk.