PZ Cusson, a maker of soap, reported a N76.02 billion loss after taxes for the fiscal year that concluded on May 31, 2024.
The company’s audited financial statement, which was published on the NGX, shows that revenues rose by 34% to N152.24 billion.
The disclosure states that the corporation saw a 180-degree turnaround in its financial situation in the year ending May 2024, going from an N14.35 billion profit after taxes in the same period of 2023 to an N76.03 billion loss after taxes. This indicated a performance drop of 630%.
Key Highlights from the result
- Revenue: N152.24 billion, up 34% from N113.96 billion in 2023
- Sales costs: N98.12 billion from N81.01 billion in 2023.
- Gross Profit increased to N54.12 billion in 2023 from N32.94 billion.
- Foreign Exchange Loss: N157.91 billion as opposed to 4.95 billion in 2023
- Operating loss for 2023 was N127.43 billion, a 1649% decrease from 2023’s operating profit of N8.22 billion.
- Loss Before Taxation: N108.19 billion, a 629 percent drop from 2023’s PBT of N20.46 billion
- Income Tax credit– N32.17 billion from tax expense of N6.11 billion in 2023
- Loss after tax– N76.023 billion from profit after tax of N14.348 billion in 2023
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- Non-controlling interest– (N7.614 billion) a decline of 623% from N1.455 billion in 2023
- Loss attributed to equity holders of the parent company– (N68.408 billion) from a profit of N12.89 billion in 2023
- Basic and Diluted EPS– (N17.23) from N3.25 in 2023
It is pertinent to know that significant foreign exchange losses are the cause of the company’s performance reversal, and these losses have also had an effect on the performance of other businesses in the industry.
Macroeconomic difficulties that PZ Cussons has been facing have had a big effect on its profit margins. The business has had to overcome obstacles like exorbitant loan rates, declining currency values, and sharply rising inflation.
PZ Cussons Nigeria recorded N152.2 billion in revenue for the fiscal year, a 34% rise over the N114.96 billion earned the year before. The company’s gross profit increased significantly as well, coming in at N54.12 billion, up 64.29% from N32.94 billion in the previous fiscal year.
The corporation did, however, disclose an operating loss of N127.43 billion, which stands in sharp contrast to the N8.22 billion profit realised the year before.
In a similar vein, the company recorded an N108.19 billion pre-tax loss, which represents a dramatic decline from the N20.46 billion pre-tax profit declared at the close of the fiscal year 2022–2023. The group’s net loss was N76.023 billion, a significant decrease from the N14.348 billion profit after taxes reported in the previous fiscal year. These losses were offset by a tax credit of N32.17 billion.
To delist from the Nigerian Stock Exchange (NGX), PZ Cussons announced plans last year to buy out its minority shareholders at N21 per share. The offer, according to the shareholders, undervalued the company, hence they rejected the plan.
The business tried to sweeten the pot in October by increasing the offer to N23 per share. The Securities and Exchange Commission (SEC) again rejected this amended offer since it was less than the company’s NGX trading price.
BrandSpur national news brand reports that PZ Cussons (Holding) Limited announced in a statement in March 2024 that it intended to examine its Nigerian businesses to “reduce risk and maximize shareholders’ value.”
