• Wednesday, May 29, 2024
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PZ Cussons’ earnings per share turns negative for first time in 4 years

PZ Cussons’ earnings per share turns negative for first time in 4 years

PZ Cussons Nigeria, a fast-moving consumer goods company, has reported a loss per share for the first time in four years, according to data compiled by BusinessDay.

The company’s latest unaudited financial statement shows that it reported a loss per share of N18.7 attributed to its shareholders for the six months ended November last year, compared to earnings per share of N1.93 in the same period of 2022.

The firm also reported an after-tax loss of N74.1 billion compared to a profit of N7.67 billion.

PZ Cussons announced an £88.2 million foreign exchange loss arising from the devaluation of the naira.

“The impact of the Nigerian unit devaluation on its bottom line was significant,” Jonathan Myers, chief executive officer of PZ Cussons, said in a recent statement.

He said the most significant challenge the company has faced by far has been the devaluation of the naira, which is today around 70 percent weaker than a year ago, representing the biggest drop in the currency’s history.

“As we set out in September 2023, macroeconomic developments in Nigeria would be the key determinant of the FY24 results. Whilst we continue to make good progress in managing this volatility, the further devaluation in recent weeks will inevitably impact our FY24 results.”

According to the company, the group will incur further and material foreign exchange losses on amounts due denominated in foreign currency.

Further analysis of the statement shows that revenue increased to N68.1 billion from N57.3 billion. The cost of sales increased to N46.2 billion from N43.7 billion.

Selling and distribution expenses increased to N6.81 billion from N5.88 billion. Administrative expenses rose to N5.14 billion from N3.36 billion.

Exchange loss increased to N87.08 billion from N2.7 billion. Other income dropped to N153.8 million from N6.1 billion.

Interest income grew to N4.2 billion from N1.69 billion. Interest cost increased to N1.14 billion from N5.02 million.

Net interest income surged to N3.07 billion from N1.69 billion. Income tax expense dropped to N340.4 million from N1.62 billion.

Total inventories increased to N29.05 billion from N26.89 billion. Inventories comprise of finished goods and goods for resale worth N13.06 billion, raw materials and consumables worth N9.53 billion, goods in transit worth N4.17 billion, engineering spares and other stocks of N2.29 billion.

Trade and other receivables grew to N11.45 billion from N8.25 billion. Trade and other payables grew to N79.94 billion from N61 billion.

Advance to distributors and suppliers dropped to N817 million from N913.9 million. Prepayments dropped to N166.1 million from N273.3 million.

Deposits for letters of credit surged to N958.1 million from N622.1 million during the period reviewed.

Cash and cash equivalents increased to N101.6 billion from N52.85 billion. Prepayments dropped to N166.13 million from N273.28 million.