PZ Cussons posted a net profit of N1.7 billion in its recently released audited full-year financial report for the period ended May 31, 2021. According to the report, revenue surged by 23.3% to N82.58 billion compared to the previous year.
The conglomerate deals in the production and distribution of consumer products such as detergents, toiletries, soaps and home appliances.
Notably, the company recorded a 23.3% growth in revenue from N66.99 billion recorded in its 2019 financial year to N82.58 billion, whilst profit after tax stood at N1.7 billion. This indicates a growth of 124% from a loss of N7.21 billion recorded in the prior year.
It is worth noting that the company practices a financial year from 1st June to 31st of May. Hence the released audited financial is a review of the performance between June 1, 2020, to May 31st 2021.
Highlights
- Gross earnings increased by 23% from N66.99 billion recorded in the previous year to N82.58 billion in the review period.
- Its gross profit surged significantly by 166% to N23.09 billion, thereby improving its gross profit margin to 28% from 12.9% recorded in the previous year.
- Other incomes skyrocketed by 1060% from N179.14 million recorded in the previous year to N2.08 billion in the review period.
- Its total assets also increased by 11.9% from N78.03 billion to stand at N87.34 billion as of May 31, 2021.
- In the same vein, Shareholders’ equity recorded a 3.9% increase to stand at N34.56 billion. It was N33.26 billion as of the previous year.
PZ Cussons generates revenue through two segments namely, home and personal care products and durable electrical appliances.
The financial statement revealed that revenue from home and personal care products during the period grew by 22.82% from N38.94 billion to N47.83 billion in the review period, while revenue made from durable electrical appliances like production and sale of Haier Thermocool Refrigerators, Freezers, Televisions, etc. was N34.74 billion up from N28.05 billion in the prior year.
Earnings for the period was subdued by some expense line items as revealed in the income statement. Foreign Exchange loss during the financial year grew by 528.96%, from the prior year, thereby affecting the operating profit for the period under review.
However, a contributing factor to the growth in net profit are the items that constitute the “Other Income” which during the period, advanced by 1,060.89% from N179 million to N2.078 billion.
The notes to account revealed that the company made more profit from disposal of fixed assets in the current period which stood at N1.90 billion compared to the previous year’s figure of N1.50 million. The profit on disposal of fixed assets was generated through the sale and transfer of a portion of land situated within its Ikorodu Industrial Estate to FrieslandCampina Wamco Nigeria Plc. The sale was approved unanimously by shareholders in February 2021.
The second item that makes up the “Other Income”, Scrap sales and rental income, slightly improved from N177 million to N179 million.
The company’s net assets increased by N1.30 billion from N33.26 billion recorded as at the end of May 2020 to N34.56 billion at the end of the review period. Total assets increased by N9.32 billion from N78.03 billion to N87.34 billion as of May 31, 2021.
What you should know
PZ Cussons Plc has a Book value per share of N8.70, a Price-to-book value of 0.68x and a P/E ratio of 15.95x.
PZ Cussons Plc is currently trading at N5.90 per share and its market capitalization stands at N23.43 billion as at Friday, October 22, 2021. Year-to-date performance shows that the company’s share price has gained 11.32%.
