Nigeria’s PZ Cussons Profit Hit 277% Amidst Inflation

PZ Cussons Nig Plc has released its Q4 2021/22 unaudited results for the period ended May 31, 2022, recording a profit of N758.37 million, representing an 11.71% increase year on year.

The company’s performance follows a year of high inflation in which consumers and businesses both had to deal with rising costs of products and services. As a result, buyers now pay more for the same amount of goods.

PZ makes money when it sells household and personal/body care products, as well as electrical items such as air conditioners, amongst others. The company also makes money from scrap sales and rental income, not excluding profit from disposal and impairment of fixed assets.

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A close look at the result reveals that the company’s profit was driven by a significant rise in the company’s main business segments – the sale of home and personal care products and durable electrical appliances.

These segments delivered revenue of N25.50 billion during the period compared to N22.60 billion in the same period last year. Revenue growth from the segments was at 12.85% year on year.

Meanwhile, from year-to-date, that is Q1-Q4 2022, the company reported a profit of N6.40 billion, reflecting an increase of 277.45% compared to the corresponding period of 2021.

Likewise, Revenue for the period was supported by sales in the company’s segments, generating a total of N100.04 billion.

Revenue for the prior year was N82.5 billion representing a 21% increase year on year. The company did not provide a breakdown of the components its revenues.

The company also closed the year with a strong cash flow of N52.8 billion, significantly more than its entire equity of N39.9 billion.

It however has a trade payable of N57.8 billion and trade debtors of N7.1 billion suggesting most of the cash belongs to its creditors.

PZ Cussons Nig Plc had earlier this year declared interim dividend of N0.25kobo for the year ending May 2022. Earnings per share for the period was recorded as N1.61, a 335% increase compared to N0.37 recorded in 2021.

However, In Q4 2022, EPS stood at N0.19, against N0.11 in Q4 2021.

Since the company started the year at N6.10 per share, PZ Cussons Plc shares closed at N11.25, having returned over 84.4% from year to date.