PZ Cussons Nigeria Plc has unveiled its financial results for the second quarter of the fiscal year 2023/2024, concluding on November 30, 2023.
The company reported a pre-tax loss of N73.8 billion, marking a significant downturn when compared to the N9.3 billion pre-tax profit achieved in the same period of the preceding fiscal year.
In Q2 2023/2024, the group accrued a pre-tax loss of N35.2 billion from the N7.8 billion pre-tax profit accrued during the corresponding quarter in the previous fiscal year.
According to the company’s unaudited financial results for Q2 2023/2024, the group posted a half-year revenue of N68.1 billion in H1 2023/2024, which reflects a 19% improvement from the N57.3 billion revenue recorded during the corresponding period in 2022/2023.
During the quarter ending November 30, 2023, the group recorded a revenue of N37.0 billion, reflecting a 24% year-on-year growth from the corresponding quarter in the previous fiscal year.
FX woes bite hard
PZ Cussons Nigeria Plc posted a gross profit of N21.9 billion in H1 2023/2024, reflecting a 61% year-on-year increase from the N13.6 billion posted in the corresponding period of the previous fiscal year.
However, due to a foreign exchange loss of N87.1 billion in H1 2023/2024, the group recorded an operating loss of N77.0 billion, which was a whopping 5224% year-on-year decline from the N1.5 billion operating profit recorded in H1 2022/2023.
Key Highlights Q2 2023/2024 (Q2 2022/2023, % Change)
- Revenue: N37.0 billion (N29.9 billion, +24%)
- Cost of sales: N24.7 billion (N22.3 billion, +11%)
- Gross profit: N12.3 billion (N7.6 billion, +62%)
- Selling and distribution expenses: N3.8 billion (N3.4 billion, +13%)
- Exchange loss: N42.6 billion (N1.7 billion, +2377%)
- Operating profit/(loss): -N36.8 billion (N768.1 million, -4889%)
- (Loss)/Profit before tax: -N35.2 billion (N7.8 billion, -548%)
- (Loss)/Profit for the year: -N35.5 billion (N6.4 billion, -658%)
- Earnings per share: -N8.94 (N1.60, -659%)
What you should know
As of Q2 2023/2024, PZ Cusson Nigeria recorded a negative equity of N23.2 billion, as the group’s accrued losses had impacted on the company’s retained earnings from the end of the 2022/2023 fiscal year.
The group’s total liabilities during Q2 2023/2024 hit N178 billion, representing a 51% rise from the total liabilities at the end of the 2022/2023 fiscal year.
This increase is mostly attributed to the rise in borrowings as well as trade and other payables.
The group’s borrowings at the end of Q2 2023/2024 hit N59.2 billion, reflecting a 147% rise from the N24.0 billion borrowings posted at the end of FY 2022/2023.
Among the reported borrowings balance of N59.2 billion, a substantial portion totaling N35.6 billion is attributed to a $40.26 million interest-free loan from PZ Cussons Nigeria’s parent company, PZ Cussons (Holding) Limited.
As of the second quarter of the fiscal year 2023/2024, the impact of Naira devaluation has contributed to an escalation of the loans’ balance from N18.7 billion to N35.6 billion.