PZ Cussons Nigeria Plc has announced its audited results for the year ended May 31, 2022, revealing 276% increase in profit after tax to N6.699 billion from N1.779 billion in 2021, with revenue growth across all key categories, despite the challenging macro environment.
The audited results which were released to the Nigerian Exchange Group (NGX) at the financial year-end indicated that revenue increased 20% to N99.503 billion versus the prior period of 2021 which stood at N82.577billion.
The company’s performance comes on the back of high inflation, during which consumers and businesses both had to contend with the rising cost of products and services. As a result, buyers now pay more for the same amount of goods.
The period in review witnessed a wave of increase in prices of goods and services, as inflationary pressures affected both consumers and producers. Similarly, producers were faced with a significant increase in the cost of raw materials and general production costs.
Results Analysis
A cursory look at the audited financial statement showing the company struggled with higher operating costs leading to an operating loss of N231 million compared to an operating profit of N946.5 million a year earlier.
- The swing in profits is on the back of revenues earned from “other income” which it earned as profit from the disposal of assets.
- According to the company “the profit on disposal relates mainly to sales of non-core residential properties in Ikoyi, Lagos state. A sum of N9.84 billion was received as consideration from the sales of the properties resulting in profit on disposal of N8.86 billion.”
- In terms of segments, the company’s Home and Personal Care Products reported an operating loss of N5.57 billion while its Durable electrical appliances reported an operating profit of N5.4 billion.
- The Home and Personal Care Products include the production and sale of Morning Fresh, Zip, Canoe, Premier, Excel, Joy, Stella, Venus, Imperial Leather, Cussons Baby, Original Source, Carex, Robb, etc.
- Durable electrical appliances include the production and sale of Haier Thermocool Refrigerators, Freezers, Televisions, Generators, Air conditioners, Washing Machines, etc.
About PZ Cussons Nigeria Plc: PZ Cussons Nigeria Plc is a subsidiary of Manchester-based PZ Cussons Holdings which owns controlling shares in the firm. It is a publicly listed Nigerian manufacturer and distributor of consumer products such as detergents, toiletries, soaps, and home appliances.
The company basically produces beauty and personal care, baby products, bath products, oral care, health care, fragrances, and skincare. Some of the popular products produced by PZ include soaps like Ava, Canoe, Elephant, Flourish, Joy, Morning fresh, Nunu, and Premier, to name a few.
This header/title. Is it me or something isn’t right???