The Digest:
PZ Cussons Nigeria Plc has made a remarkable financial comeback, reporting a pre-tax profit of N16.6 billion for the year ended May 31, 2025. This is a significant improvement from the massive N122.4 billion loss it faced in 2024. The turnaround was primarily driven by a substantial increase in revenue and a drastic reduction in foreign exchange losses.
Key Points:
- The company's revenue surged by nearly 40% to N212.6 billion. The home and personal care segment was the main growth driver.
- The most significant change was a reduction in foreign exchange losses, which decreased by over 95%, from N157.9 billion to N7.7 billion. This single factor was the biggest contributor to the company's return to profitability.
- While revenue went up, so did costs. Both the cost of sales and operating expenses increased significantly, but the rise in revenue was enough to still generate a gross profit of N57.7 billion.
- Total assets grew to N168.9 billion. However, the company's equity remains negative at -N17.3 billion due to accumulated losses, even though this is an improvement from the previous year.
Sources: Nairametrics, Business Day
