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Competition and weak income lead to decline in PZ’s performance

PZ Cussons Nigeria (PZ) reported FY18 results with Revenue increasing by 3% y/y.



PZ Cussons to slim down Nigerian business, Imperial Leather maker sees profits slump on Nigerian woes, PZ Cussons revenues, Nigerian news, Nairametrics business news, Naija news, PZ Cussons

Nairametrics staff subscribe to some analysts report online and once in a while, we like to share with our readers. This particular article from Leading Investment Banking Firm and Fund Managers, CSL Stockbrokers Limited caught our attention and we thought to share with our readers.

The investment firm in its report titled Still no soft landing for electricals analysed the performance PZ Cussons in the light of its recently released financial results.

Here is a summary of the highlights in the report:

PZ Cussons Nigeria (PZ) reported FY18 results with Revenue increasing by 3% y/y to N80.6 billion (US$223.9 million), keeping below our forecast of N81.6 billion. FY18 Net Income attributable to equity holders of the parent decreased by 44% y/y to N1.8 billion, coming largely in-line with our estimate. FY18 Revenue came in below our estimates mainly due to intensive industry competition, weak disposable income levels and under-performance in the company’s electronics business.

Growth driven by consumer goods

We expect revenue growth to be driven primarily by the Branded Consumer Goods segment given the in-elasticity of demand and strong customer and brand loyalty for personal care products when compared with other segments of the company.

However, still weak consumer demand and higher inflow of imported Branded Consumer Goods products (due to rise in dollar liquidity) are likely to constrain recovery in volumes in the near-term.

Why the home electrical business may continue to lag behind

The Home electrical business will most likely continue to under-perform, given the elastic nature of demand for electrical products, despite the marginal price cut during FY18 to boost sales volumes. In 4Q18, the company’s Cool-world electrical retail stores announced that it is introducing a new range of energy-saving home appliances, including refrigerators and air conditioners in the Nigerian market.

PZ has also taken several initiatives including launching new product offerings at attractive price points, e.g. in the Fabric Care category, the Tempo multipurpose detergent was relaunched in a new pack size, keeping the brand within reach of consumers. The company’s revenue-driving Morning Fresh dish wash liquid continues to maintain the no.1 spot in Nigeria and Kenya markets and customer choice has increased with the introduction of a new small 25ml packet in this category.


We lower our price target for PZ to N18.2/s from N24.7/s previously. However, we retain our Hold recommendation, given the 21% potential upside from last closing price of N15.0/s. Our target price is based on a combination of DCF valuation and DDM valuation in a ratio of 60:40.

Fikayo has a degree in computer science with economics from Obafemi Awolowo University. ITIL v3 in IT service management. An alumnus of Daystar Leadership Academy. Prior to joining Nairametrics had stinct in Project management, Telecommunications among others. Also training in Consulting and Investment banking from Edubridge Academy. He has very keen interest in Politics, Agri-business, private equity and global economics. He loves travelling and watching football. You can contact him via [email protected]

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Tip Jar, Twitter’s new giveaway feature that lets users send money to you

Twitter has introduced a new feature called Tip Jar that allows you send money to your favourite tweeters.



US Elections: Twitter, Facebook suspend several news accounts

Twitter has introduced a new feature called Tip Jar that allows you send money to your favourite tweeters.

According to the blog post, “Tip Jar is an easy way to support the incredible voices that make up the conversation on Twitter. This is a first step in our work to create new ways for people to receive and show support on Twitter – with money.”

The new feature utilizes different payment platforms like PayPal, Venmo, Patreon, CashApp, and others.

Users can link their Twitter accounts with Tip Jar to any of these payment providers. Twitter takes no cut.

READ: Facebook is creating an audio chat product similar to Clubhouse

You’ll know an account’s Tip Jar is enabled if you see a Tip Jar icon next to the Follow button on their profile page. Tap the icon, and you’ll see a list of payment services or platforms that the account has enabled. Select whichever payment service or platform you prefer and you’ll be taken off Twitter to the selected app where you can show your support in the amount you choose.

Twitter has released series of features this year as part of its efforts to grow Twitter’s user base to 315 million daily active users by the end of 2023.

The company also launched Twitter crop where images don’t get crop again on Twitter for Android or iOS. Standard aspect ratio images (16:9 and 4:3) will now display in full without any cropping and images will look just like they did when you shot them.


READ: Does YouTube stand a chance against TikTok?

Lauren Alexander, a Twitter spokesperson said, “Today’s launch is a direct result of the feedback people shared with us last year that the way our algorithm cropped images wasn’t equitable, The new way of presenting images decreases the platform’s reliance on automatic, machine learning-based image cropping.”

Twitter has tested several features and more will be rolled out soon.

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Customs Apapa Command generates revenue of N65.4 billion in April

This indicates a 64% increase in collection and an unprecedented record that has never been achieved in the history of Apapa Area Command.



Border closure: Amid N5bn daily revenue, Customs officials lament allowance slash  

The Nigerian Customs Service (NCS) Apapa Area Command has announced a revenue of N65,463,398,355.85 for the month of April—an increase of N25,585,561,139.92 compared to the same period last year.

This was disclosed by Comptroller Ibrahim Yusuf, Area Controller of Apapa command, in a press briefing on Thursday.

What Ibrahim Yusuf is saying

“This indicates a 64% increase in collection and an unprecedented record that has never been achieved in the history of Apapa Area Command.

In line with the provision of extant laws, trade guidelines, and enforcement of government fiscal policy measures, the command was able to further strengthen its anti-smuggling operations against economic saboteurs through credible intelligence-driven operations.

READ: Customs revenue rises by N200 billion to hit N1.5 trillion in 2020

This led to the seizure of 4×40 feet containers laden with unregistered pharmaceuticals (674 cartons of tramadol tablets in 225mg and 120mg, and 805 cartons of codeine syrup in 100ml) at APMT and SIFAX 3 bonded terminal respectively.

Other items seized in the period under review include: two containers of unprocessed wood and one container of scrap copper wire,” he said.

He added that the progress the Apapa Command made in the month of April was possible due to the resilience of the officers, citing that the Command had taken steps to ensure efficient revenue collection by creating an enabling environment for legitimate businesses to thrive.

What you should know

Recall Nairametrics reported that the Nigeria Customs Service (NCS) Apapa Command stated earlier that it generated a revenue of N159.58 billion in the first quarter of 2021.

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