• Friday, September 29, 2023
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PZ Cussons returns to profit on 23% jump in sales

PZ Cussons returns to profit on 23% jump in sales

PZ Cussons, one of the leading manufacturers and distributors of personal care in Nigeria, has returned to profit after a hard 2020 as improved sales helped boost profit.

The company reported a 124 percent jump in profit to N1.69 billion for the year ended May 2021, from the N7.94 billion loss reported in their financial statement ending May last year, the performance was largely driven by the increase in revenue.

PZ Cussons grew its total sales to N82.58 billion in the review period of 2021, 23.26 percent higher than the sales of N66.99 billion reported in the comparable period of last year.

The company’s revenue growth in the review period can be attributed to the relaxed measures put in place by the Federal Government to control the spread of the novel Coronavirus in 2020.

The consumer goods firm came under pressure in the review period of 2020 as Nigerian consumers held back spending and adjusted their consumption patterns in light of the coronavirus impact on their income.

But, with full re-opening of the Nigerian economy following the government’s ease in lockdown restrictions, PZ Cusson and other industry players have seen an increase in sales amid the gradual rise in consumers’ purchasing power.

Read also: Unilever bounces to profitability after 9-month loss of N2.06bn in 2020

Breakdown of the company’s May 2021 financials showed that other sources of PZ Cusson’s income like Profit on disposal of fixed assets and the sales of scrap and rental income also boosted the profit of the company this year compared to the previous year.

Profit on disposal of fixed assets yielded N1.89 billion in the period under review, compared to the N179.03 million earned last year.

The sales of scrap and rental income also yielded N179.03 million compared to the N177.64 million reported last year.

The company’s performance in the review period was despite the foreign exchange loss of N5.95 billion the company incurred. In the previous year, the company reported a foreign exchange loss of N945.86 million, which is 729 percent lower.

The loss of N85.06 million incurred from the impairment of trade receivables was also less than last year’s loss of N137.24 million, this reduced the expenses of the company which consequently boosted the performance of the period.

PZ Wilmar Limited which is a subsidiary of PZ Cussons emerged as Industry Leader in Quality Systems and Food Fortification in Nigeria during the inaugural launch of the Micro Fortification Index (MFI). Its brands include Devon King’s and Mamador with product portfolios that include cooking oil, margarine, spread and seasoning.

PZ Wilmar’s recognition was for its commitment to the implementation of the various food fortification index compliance guidelines. MFI report placed PZ Wilmar brands, Devon King’s and Mamador tops, with both emerging as the top two most fortified food products, from a pool of 18 notable food brands in Nigeria.

Its Technical Manager, Dare Ogunbela, who spoke during the occasion said the company is taking food fortification seriously.

“Today there is even more emphasis placed on the importance of healthy living, one which food plays a major role in. This is why we at PZ Wilmar take food fortification very seriously, making sure our food products from our cooking oil, margarine, spreads and seasonings are well-fortified with all the required nutrients. The MFI report is a testament to this, and our consumers can. This MFI concept is powered by TechnoServe as part of its effort to tackle malnutrition in Nigeria,” Ogunbela said.

According to him, the company gets support from Bill and Melinda Gate foundation through the TechnoServe’s Strengthening African Processors of Fortified Foods (SAPFF) project.

“It is recognised by the Federal Government, its regulatory agencies such as the Standards Organisation of Nigeria (SON), National Agency for Food and Drug Administration and Control (NAFDAC), Federal Competition and Consumer Protection Commission (FCCPC) and other industry players in the food sector.”