PZ Cusson’s profit jumps by 458% to N5.6bn on rising sales
PZ Cussons recently released its latest financial books with a significant boost in profit as a result of rising sales, analysis by Businessday shown.
Noteworthy from the financial books, profit grew by a massive 458 percent to N5.64 billion compared to N1.01 billion, in the nine-month ended, February.
Inflation affected the producers with significant increase in prices of raw materials, and cost of production which affected PZ’s profit despite the increase.
Revenue spiked by 24 percent to N74.5 billion in February 2022 compared to N60 billion in February 2021.
PZ’s shares jumped 9.68 percent higher at N0.20 per share, Monday.
Cost of sales rose 31 percent to N57.2 billion from N43.6 billion in the period under review, which implies Pz Cussons spent more on the accumulated total of all costs used to create a product or service which has been sold.
Read also: Fidson Healthcare grows profit by 156 percent to N3.08 billion in 2021
Interest income increased to N420.8 million compared to N153.6 million in the previous year, which showed the earnings generated by investments such as savings accounts and certificates of deposit.
PZ cusson’s was able to cut down on its interest cost to N7.48 million in February 2022, 89 percent from N69.3 million in February 2021.
Administrative expenses declined by just 3 percent to N4.84 billion compared to N4.99 billion.
Selling and distribution expenses increased to N5.45 billion from N4.78 billion in the period under review.
Total assets grew to N87.3 billion compared to N69.3 billion in the comparable periods.
Inventories dipped percent to N23.2 billion compared to N26.2 billion in the previous year.
PZ engages in the manufacture, distribution and sale of a wide range of consumer products and home appliances through owned depots. These products are leading brand names throughout the country in detergent, soap, cosmetics, refrigerators, freezers and air conditioners. The group also distributes products of Nutricima Limited, Harefield Industrial Nigeria Limited and PZ Wilmar Food Limited.
Net cash flow generated from operating activities which depicts the cash-generating abilities of a company’s core business activities rose to N10.3 billion from N12.3 billion in the period under review.
Net cash used in investing activities which represents a section on the cash flow statement that reports how much cash has been generated or spent from various investment-related activities in a specific period rose to N10.17 billion from N2.27 billion in the comparable periods.
Net cash flow used in financing activities recorded a loss year on year of N1 billion from N466.4 million, which implies the net flows of cash that are used to fund the company.
PZ Cussons plc is a major British manufacturer of personal healthcare products and consumer goods. It operates worldwide, especially in nations in Africa and the Commonwealth. The company is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.