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Company Results

PZ incurs N1 billion in exchange rate loss 

The company made a loss of N212.35 million in Q1 20/21, driven by a foreign exchange loss of 1.052 billion. 



PZ Cussons Nigeria Plc has disclosed in its Q1 2020/2021 financial statement that the company suffered a foreign exchange loss of N1.052 billion, prompted by the fall in the value of Naira against the US Dollar. 

The foreign exchange loss of N1.052 billion the company incurred is 1548.5% higher than the N63.83 million the company incurred the same period last year.  

This eventually triggered a Loss After Tax of N212.36 million, as the Operating profit of N755.44 million was completely erased. 

Exchange loss is caused by a change in the exchange rate used, and with the fall in the value of Naira against the US Dollar this year, the company earnings were exposed to the financial risks from the fall in the international value of the local currency. 


  • Revenue increased by 18.3%
  • Cost of sales increased by 5.5%
  • Gross profit increased by 80.2%   
  • Operating profit increased by 173.7%
  • Foreign exchange loss increased by 1548.5% 
  • Loss after taxation decreased by 80.6%

It is important to note that the loss PZ incurred in the period under reviewis 80.6% lower than the loss it reported in the corresponding period last year. This is a result of the 18.3% increase in revenuewhich was driven by the increase in sales from the core business of the group.  

The major drive in demand which led to the increase in PZ Cussons’ revenue, came from the continued closure of Nigeria’s land borders since August 2019. This development helped to unlock markets for the company’s products, which was once lost and proliferated by smuggled products. 

However, the market demand that Nigeria’s border closure opened upcreated the necessary shift that compensated for the weak consumer spending, spiked by the low disposable incomes and the COVID-19 impact on household income.

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Omokolade Ajayi is a graduate of Economics, and a certificate holder of the CFA Institute’s Investment Foundation Program. He is a business analyst, and equity market researcher, with wealth of experience as a retail investor. He is a business owner and a stern advocate of Financial literacy, who believes in the huge economic prospect of the Nigerian Payment channels and Fintech space.

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Company Results

Dangote Sugar yearly revenue surge by 33%, announces a dividend of N1.50

Dangote Sugar Refinery Plc. recently declared a 33.0% Year to year growth in earnings to N29.8 billion for the financial year of 2020



Dangote Sugar Refinery to merge with Savannah Sugar, Dangote was $4.3 billion richer in 2019, Dangote Sugar announces closed period, ban insider shareholders from trading , Dangote Cement: Weak revenue performance, elevated OPEX weigh on earnings

Dangote Sugar Refinery Plc via the Nigerian Stock exchange recently declared a 33.0% Year to year growth in earnings to N29.8 billion for the financial year of 2020

The company also announced a dividend of N1.50 (vs N1.10 total dividend in 2019).

Dangote Sugar’s revenue expanded by 33.0% YoY amid strong volume growth in its 50 kg sugar offering (c.96.0% of total sales).

The company’s impressive outing amazed a significant number of stock pundits despite a surge in tax charges which partially offset some of the positive passthrough from border closures on earnings.

READ: Dangote Sugar Refinery: Revenue soars amid rising cost of sales

Gross margin expanded by 1.31ppts Year to Year to 25.08%, which points to the effects of recent cost-containment measures and the slump in global raw sugar prices in 2020 amid the COVID-19 pandemic.

The raw sugar price dropped to as low $0.09/lb in 2020 and traded c.$0.13/lb on average during 2020 (-4.38% YoY)

What you should know: Dangote Sugar Refinery Plc (the Company) was incorporated as a Public Limited Liability Company on 4 January 2005, commenced operation on 1 January 2006, and became quoted on the Nigerian Stock Exchange in March 2007.

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Its current shareholding is 68% by Dangote Industries Limited and 32% by the Nigerian public.

The principal activity of the Group is the refining of raw sugar into edible sugar and the selling of refined sugar. The Group’s products are sold through distributors across the country.

READ: Buhari to commission phase 1 of brand new refinery this week

That being said, in spite of such impressive results from the N217 billion valued company experienced a surge in operational cost partly due to persistent FX scarcity.

Dangote Sugar reported a four-fold increase in finance cost, which can be largely attributed to the foreign exchange loss in its ordinary business operations, driven by persistent FX shortages and naira repricing at the exchange rate windows.

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Company Results

Zenith Bank spends N20 billion on IT in 2020, up 122%

Zenith Bank spent a whopping N20 billion on IT in 2020 more than double its 2019 spend of N9 billion. 



Nigeria’s largest bank by assets, Zenith Bank Plc, spent a whopping N20 billion on Information Technology in 2020, more than double its 2019 spend of N9 billion.  

A cursory view of the bank’s expense line for 2020 reveals that it spent N148.1 billion on other expenses compared with N129. 4 billion in the same period of the previous year. Information technology was the major driver of the bank’s expense line, making up about 15.5% of total operating expenses. 

READ: How does a bank make N19 billion a month?

Why this matters: Most banks are expected to record higher spend on information technology in 2020 due to forced work-from-home policies triggered by Covid-19. Apps such as Zoom, and Microsoft Teams went mainstream during the pandemic as most businesses increasingly depended on them to function. 

  • While remote working may have been a major contributor, the bank likely splurged heavily on software applications, cloud computing, SaaS, and investing in technology to drive its FinTech goals. 
  • Apart from Information Technology, the bank also spent more on AMCON levy during the year, incurring cost of N30.9 billion.  
  • A notable reduction in year-on-year expenditure was its spending on Hotels and Travels. The bank spent N1.8 billion in Travel and Hotels. 
  • Zenith Bank reported a record N230 billion in profit after tax for the year ended December 2020. The bank is now the largest bank by Total Assets, with over N8.4 trillion.

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