PZ Cussons Nigeria Plc has reported a net loss of N96.4 billion for its financial year ended May 31, 2024.
The substantial losses have led the company to post a negative equity of N47.2 billion at the end of the fiscal year.
The Company released its unaudited interim financial statements for the quarter ended May 31, 2024 on the Nigerian Exchange Plc.
PZ Cussons has been struggling with macroeconomic headwinds which have negatively affected its margins. High interest rates, exchange rate depreciation and galloping inflation are some of the challenges faced by the company.
Reviewing the Company’s results showed that revenue grew by 33.5 per cent to N152.2 billion during the fiscal year from the N114 billion recorded in the corresponding period of 2023.
Gross profit stood at N60.6 billion, representing an 84 per cent increase from the N32.95 billion posted in the previous fiscal year. Despite achieving an impressive 40 per cent gross margin during the fiscal year, the group experienced a substantial exchange loss of N158 billion, resulting in a negative operating margin.
Consequently, the group reported an operating loss of N111.5 billion. Pre-tax loss amounted to N109 billion, a contrast from the N20.46 billion pre-tax profit posted at the end of 2023 fiscal year. While the Company net loss for the period stood at N96.4 billion, down from the N13.3 billion profit after tax posted in 2023.
PZ Cussons Nigeria’s cash and cash equivalents declined by 68 per cent to N32.7 billion, primarily due to a negative cash flow of N87.3 billion generated from operating activities. The Group’s borrowings from its parent company, PZ Cussons (Holding) Limited, surged to N59.8 billion, largely attributed to a $40.26 million non-interest loan facility and FX revaluation adjustments.
In September 2023, PZ Cussons (Holding) announced plans to buy out the remaining 26.73 per cent shareholding of PZ Cussons Nigeria and delist the company from the NGX.
However, the Securities and Exchange Commission (SEC) declined the delisting request in March 2024. Also, the Holding Company announced plans to review its Nigerian operations in order to reduce risk and maximise shareholders value.
