PZ Cussons Nigeria Plc posted a net profit of N1.7 billion in its recently released audited full-year financial report for the period ended May 31, 2021, a 124% leap from a loss of N7.21 billion recorded a year ago.
The report also showed 23.3% increase in gross earnings to N82.58 billion from N66.99 billion recorded in the 2019 financial year compared to the previous year.
Other highlights of the audited financial performance between June 1, 2020, and May 31st, 2021, include post-tax profit at N1.7 billion, while gross profit jumped 166% to N23.09 billion.
Other incomes skyrocketed by 1060% from N179.14 million to N2.08 billion, and total assets rose 11.9% from N78.03 billion to N87.34 billion year-on-year.
Similarly, Shareholders’ equity recorded a 3.9% increase to stand at N34.56 billion from N33.26 billion a year earlier.
PZ Cussons, manufacturers and distributors of consumer products such as detergents, toiletries, soaps and home appliances, generates revenue from two segments – home and personal care products, and durable electrical appliances.
The financial statement revealed that revenue from home and personal care products by 22.82% from N38.94 billion to N47.83 billion in the review period, while income from durable electrical appliances, notably Haier Thermocool Refrigerators, Freezers, Televisions, among others was N34.74 billion up from N28.05 billion.
PZ Cussons, manufacturers and distributors of consumer products such as detergents, toiletries, soaps and home appliances, generates revenue from two segments – home and personal care products, and durable electrical appliances.
However, Earnings for the period were subdued by some expense line items as revealed in the income statement. Foreign Exchange losses during the financial year grew by 528.96%, from the prior year, thereby affecting the operating profit for the period under review.
The notes to the account revealed that the conglomerate made more profit from disposal of fixed assets in the current period, which stood at N1.90 billion compared to the previous year’s figure of N1.50 million. The profit on disposal of fixed assets was generated through the sale and transfer of a portion of land situated within its Ikorodu Industrial Estate to FrieslandCampina Wamco Nigeria Plc. The sale was approved unanimously by shareholders in February 2021.
The second item that makes up the “Other Income”, Scrap sales and rental income, slightly improved from N177 million to N179 million.
The company’s net assets increased by N1.30 billion from N33.26 billion recorded at the end of May 2020 to N34.56 billion at the end of the review period. Total assets increased by N9.32 billion from N78.03 billion to N87.34 billion as of May 31, 2021.
PZ Cussons Plc has a Book value per share of N8.70, a Price-to-book value of 0.68x and a P/E ratio of 15.95x.
