Global consumer goods manufacturer, PZ Cussons, yesterday disclosed that its financial performance for full-year 2019 (which ends in May) will not be very profitable.
This situation is due largely to underwhelming performance by its Nigerian subsidiary, PZ Cussons Nigeria Plc.
PZ Cussons Nigeria Plc manufactures and markets a wide range of popular products such as ROBB balm, Imperial Leather, and Morning Fresh, thereby making it an important part of the global company’s operations.
But as Reuters reports, sluggish demand and a number of other economic challenges in the country combined to cause poor performance.
To this end, it expects profit before tax to be around £70 million and profit after tax to stand at £32.8 million.
“The company said full-year adjusted pretax profit is now expected to be 70 million pounds ($92.1 million), down from 80.1 million pounds a year earlier. PZ Cussons also said adjusted pretax profit for the half year declined 1.5 percent to 32.8 million.”
Recall that as Nairametrics reported back in September 2018, PZ Cussons subtly hinted at low profitability prior to publishing its financial statement for the quarter ended August 31st of last year.
A statement by the company had acknowledged that PZ Cusson’s entire global operations were experiencing challenges in different markets, especially so in Nigeria where people’s disposable income is lowered due to the upcoming general election in the country.
The company then issued yet another trading update in December last year, this time warning that its half-year financial result (which ended in November), could entail a loss.
In view of this latest disclosure as the company’s full accounting period almost comes to an end, its investors should already know what to expect in terms of dividend.
A closer look at PZ Cussons Nigeria’s performance
The company reported a 14.76% decline in revenue for Q2 2019; N35 billion in 2019 compared to N41.1 billion in 2018. It, however, reported a profit after tax of N1.2 billion, compared to a loss after tax of N589.5 million year on year.
The company was incorporated in 1948 and later listed its shares on the Nigerian Stock Exchange where its shares traded at N12.15 during today’s trading session.