PZ Cussons Nigeria Plc’s (NSE – PZ) grew its revenue by 22% in the first six months of its financial year, for the period ended November 30, 2022. This is according to its Q2, 2022/23 unaudited interim financial statement for the quarter ended 30th November 2022 released to the Nigerian Stock Exchange and the investing public.
The company’s profit after tax also soared 198% compared to the same period in 2021.
Income statement:
Revenue increased to N57.26 billion from N47.087 billion.
The gross profit rose to N13.56 billion from N11.39 billion in the same period in 2021.
The company reported an operating profit of N1.5 against an operating loss of N285.34 million reported in 2021.
PZ Cussons Nigeria Plc reported N6.10 billion as “other income.” A further review of its financial statement showed that the income relates to the sale of “non-core” residential property at Ikoyi, Lagos state. The Company received N6.53 billion as net consideration resulting in a profit of N5.94 billion.
Thus, the profit before tax jumped 210% to N9.29 billion from N3.00 in 2021.
The company reported an income tax expense of N1.62 billion, 279% increase from the N426.71 million paid in 2021.
The company’s profit after tax rose 198% to N7.67 billion from N2.57 billion 2021 with earnings per share rising to N1.93 from N0.65.
Balance Sheet
PZ Nigeria Plc’s total assets increased to N129.82 billion from N109.47 billion as at the end of its 2021/2022 financial year ended May 31, 2021.
Major components of the assets:
- Cash and cash equivalents rose to N65.51 billion from N52.85 billion.
- Inventories rose to N32.75 billion from N26.89 billion in 2021.
- Property, plant and equipment dropped to N15.94 billion from N16.49 billion
The increase in total assets was offset by increase in both the total equity and liabilities. The total equity rose to N45.41 billion from N37.74 billion mainly due to increase in the retained earnings component of equity which increased to N32.48 billion from N25.30 billion.
The total liability also increased to N84.41 billion from N71.73 billion mainly due to short term borrowing of N17.9 billion.
The short term borrowings relates to loan received from ultimate parent company – PZ Cussons(Holding) Limited, UK, in July 2022 based on agreement signed in June 2022. The facility amount is $40.26 million and it is non-interest bearing, according to the company.
Trade and other payables represent 67.25% or N56.77 billion of the total liabilities
Cash Flow
According to its cash flow statement, PZ used N12.20 billion in its operating activities whereas N7.85 billion was generated from investing activities and N17.03 billion was generated from financing activities due to the loan receipt.
PZ’s cash and cash equivalents netted N65.52 billion at the end of the period in review.
About PZ Cussons Nigeria Plc
The company was incorporated on 12 April 1948. The principal activities of the company are manufacturing, marketing, sale, and distribution of a wide range of consumer products and home appliances which are among the leading brand names throughout the country in detergent, soap, cosmetics, refrigerators, and air conditioners.
The group also distributes the products of Nutricima Limited, Harefield Industrial Nigeria Limited, and PZ Wilmar Food Limited.
At the close of trading on Friday, the equity price of PZ gained 9.73% to close at N12.4 per share. The 52 week high and low prices are N12.4 and N8.4 per share respectively.
YTD the share price is down by 85.25% while in 5 years it has lost 49.78% of its value.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
