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PZ Cussons’ profit jumps 183% to N8.7bn on rising sales

PZ Cussons’ profit jumps 183% to N8.7bn on rising sales

PZ Cussons recently released its latest financial books with a significant boost in profit as a result of rising sales, an analysis by BusinessDay has revealed.

The firm’s operating profit jumped to N8.71 billion in the year to date ended May 2023 from N3.08 billion in the same period of 2022.

On a quarterly basis, the firm recorded a 29.3 percent growth in operating profit to N3.71 billion in the quarter to date ended May 31, 2023, from N2.87 billion in the same period of 2022.

A company’s operating profit is its total earnings from its core business functions for a given period, excluding the deduction of interest and taxes. It also excludes any profits earned from ancillary investments, such as earnings from other businesses that a company has a part interest in.

PZ Cussons’ profit after tax rose to N15.35 billion in the year to date ended May 2023, 140 percent increase from N6.4 billion in the year to date ended May 2022.

The consumer goods firm recorded a 14 percent increase in revenue to N113.83 billion from N100.04 billion in the period reviewed.

PZ Cussons’ cost of sales grew 7.4 percent to N81.33 billion in the year to date ended May 2023, from N75.75 billion in the year to date ended May 2022.

The firm’s selling and distribution expenses stood at N11.68 billion, 16 percent increase from N10.07 billion in the period reviewed.

The firm’s administrative expenses amounted to N7 billion in the year to date ended May 2023, 2.3 percent from N6.84 billion in the year to date ended May 2022.

PZ Cussons’ other income stood at N6.26 billion, an 8.7 percent increase from N5.76 billion in the comparable period.

Read also: Consumer goods firms grow liquid assets to N534bn in Q1

Net interest income increased to N4.9 billion in the year to date ended May 2023, a 491 percent increase from N828.64 million in the year to date ended May 2022.

PZ Cussons’ net cash flow generated from operating activities amounted to N17.41 billion from N22.92 billion in the comparable periods.

Net cash used in investing activities amounted to N10.8 billion from N10.4 billion which indicates a 3.8 percent year-on-year increase.

The firm’s net cash flow used in financing activities stood at N20.31 billion in Q4 ended May 31, 2023 from a negative N1.14 billion in the same period of 2022.

Total equity rose to N49.08 billion from N37.74 billion which indicates a 30 percent increase in the comparable periods.

Cash, cash equivalents and bank overdrafts at the end of the year rose to N101.36 billion in the year to date ended May 2023, 91.6 percent increase from N52.89 billion in the year to date ended May 2022.

Basic and diluted earnings per share grew 140 percent to N387 in the year to date ended May 2023 from N161 in the year to date ended May 2022.

The board of directors of PZ Cussons Nigeria approved the appointment of Dimitris Kostianis as a member of the board and as the chief executive officer of the company with effect from June 1, 2023.

In the same vein, PZ Cussons’s board of directors announces the retirement of Panagiotis Katsis as the chief executive officer of the company and from the board with effect from May 31, 2023.

The approved CEO of PZ Cussons Nigeria, Dimitris has spent more than 25 years at PZ Cussons which includes 13 years of which were in senior leadership roles for PZ Cussons Africa.

Until his appointment, Dimitris served as PZ Cussons MD for Asia. Oghale Elueni, currently a member of the PZ Cussons Africa leadership team, has been appointed as managing director of PZ Cussons Nigeria Consumer business.