Shares of PZ Cussons Nigeria Plc have recorded a strong rebound in early October 2025, rising 21.74% following a weak performance in September, when the stock declined 6.50%.
The downward trend began after the share price closed at N43 in July, easing to N36.80 in August and further to N34.50 in September.
However, sentiment improved sharply after the release of the company’s first-quarter results for the 2025/2026 financial year ended August 31, 2025, which were published on September 30.
The results showed a strong turnaround, with pretax profit rising to N21.5 billion compared to a N5.22 billion loss in the same period last year.
Remarkably, this first-quarter profit has already exceeded the company’s full-year profit of N16.66 billion recorded for the financial year ended May 2025, supported by stronger revenue growth and reduced foreign exchange losses.
It appears investors responded positively to the improved outlook. By October 6, 2025, PZ Cussons’ share price had risen to N42, up 21.7%, with over 37 million shares traded.
Market trend
Shares of the company opened the year at N24.30 but eased to N23.00 by the end of January, before rebounding sharply in February with a 53.91% gain that accounted for most of the first-quarter performance.
The second quarter started on a weaker note, with the stock falling 21.8%, but gains in May and June helped it recover, leaving it up 2.43% for Q2.
July emerged as the strongest month in the third quarter, lifting the stock by 13.16%. Although the stock experienced weaker performances in August and September, it held above N30.
A renewed bullish momentum appears to have picked up in early October. This early bullish trend reflects growing investor confidence.
Drivers
The company delivered a strong first-quarter performance, driven by revenue growth, profits from asset sales, and lower interest expenses, despite ongoing cost pressures.
- Revenue rose 48% year-on-year to N59 billion, already accounting for 28% of last year’s total.
- Other income increased to N12.175 billion, largely boosted by the sale of three properties and proceeds from scrap sales.
- Interest expenses fell sharply by 84% to N221 million, while total borrowing declined 18% to N58.386 billion, most of which is still owed to the parent company, PZ Cussons (Holding) Limited UK.
Cost pressures remained, with the cost of sales growing faster than revenue, reducing the gross profit margin to 27% from 31%, though gross profit increased to N16.099 billion from N12.231 billion. Overheads also stayed high, consuming more than 63% of gross profit.
Despite these challenges, operating profit remained strong at around N22 billion, up 14% from last year, lifting the operating profit margin to about 37%.
