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FY 2022: Access Holdings, Zenith Bank, others report N33.72trn customers deposit



By Philemon Adedeji

A total of six banks customers deposits rose significantly to N33.711 trillion in full year 2022, reflecting an increase of 27 per cent from N26.52 trillion reported in 2021 financial year, this information provided is according to Nigerian NewsDirect investigation  .

The six financial institutions are: Access Holdings, Zenith Bank plc, United Bank for Africa (UBA) plc, Stanbic IBTC, Guaranty Trust Holding Company (GTCO) plc and First City Monument Bank (FCMB)

From the audited financial results ended December 31, 2022, Access Holdings maintained the leader in customer’s deposit, followed by Zenith Bank, while United Bank for Africa recorded as the third in customer’s deposit.

Likewise, GTCO recorded as the fourth in deposit as FCMB group and Stanbic IBTC reported the lowest.

Access Holdings reported 9.251 trillion customers deposit in full year 2022, representing an increase of 33 per cent from N6.954 trillion reported in the corresponding year 2021, the company asset base grew to N15. 0 trillion with CASA mix up by 5.0 per cent to 63 per cent as a result of leveraging innovation, digital technology and financial inclusion to mobilize sustainable low-cost deposits.

Zenith Bank which followed as the second highest in deposit, grew marginally by 39 per cent to N8.98 trillion in twelve months of 2022 from N6.47 trillion reported in prior financial year 2021, the growth in customers deposit came from all products and deposits segments (Corporate and retail), thus consolidating the bank’s market leadership and indicating customers trust.

United Bank for Africa (UBA) declared 7.8 trillion customers deposit in full year 2022, reflecting a significant increase of 22.9 per cent from 6.4 trillion reported as of end of December 2021, the growth in customers deposit driven by increased customers confidence, enhanced customers experience, successes from the ongoing business transformation programme and deepening of it’s retail banking franchise, Guaranty Trust Holding Company announced 11.8 per cent increase in customers deposit to N4.485 trillion as of end of December 2022 from N4.012 trillion reported in Full year 2021.

Likewise, First City Monument Bank reported 25.1 per cent growth in customers deposit to N1.945 trillion as of end of December 2022 from N1.554 trillion in full year 2021.

After FCMB is Stanbic IBTC which reported the lowest, 11.0 per cent increase in customers deposit to N1.25 trillion in 12 months of 2022 from N1.13 trillion in 12 months of 2021.

The Vice Chairman of Highcap Securities Limited, David Andori commented on the results that, It’s interesting to note that the banks are growing their deposit liabilities despite the harsh economic situation.

“If we are to judge with this, Access has become the largest bank in Nigeria. However, their balance sheet sizes will show which bank is bigger. This information shows that Access and Zenith are attracting new customers and growing their balance sheet at a fast rate.”

Commenting on the result, the Group Managing Director/CEO, Oliver Alawuba, said notwithstanding the tight and challenging operating environment, UBA continues to deliver significant performance.

He said, “The Group delivered record headline earnings (+29.2 per cent) and profitability (+31.2 per cent) amid significant headwinds in markets where we are present and a heightened global risk environment.

“Our record earnings, growth, and robust capital levels supported higher returns for the shareholders. The Group is on course to achieve its strategic goals, and we are confident we will achieve our targets.

“We have navigated unprecedented macroeconomic headwinds and made significant gains in our diversification strategy and Customer 1st philosophy as we build resilience in our operations across Africa and the Rest of the World to support the mission of providing superior value to our stakeholders.

The Group’s Profit After Tax increased by 43.5 per cent to N170.3billion, with underlying growth in our key income lines and moderation in our cost of funds, resulting in robust growth of 14.6 per cent in the Group’s Shareholders’ Funds and stronger liquidity.

“We continued to sharpen our risk management structure and practices to align with evolving risks,” Alawuba said.

On the outlook for the year 2023, Alawuba said, “We are strategically positioned to increase our market share in our countries of presence, with expansion to Dubai, United Arab Emirates and strong growth of our digital banking and payment businesses, which is pivotal to the evolving cashless economy in Nigeria.

“We strive to deliver increasingly attractive returns to our shareholders and continued positive impact in the geographies and economies in which we operate.”

UBA’s Executive Director, Finance and Risk Management, Ugo Nwaghodoh, said going by this recent performance, UBA remains on strong footing and is comfortably positioned to take on more opportunities in Nigeria, Africa and beyond.

“UBA Group’s 2022 Full Year performance was buoyed by strong balance sheet growth and improvement in Net interest margin, as Group’s Total Assets and customer deposits grew 27.2 per cent and 22.9 per cent respectively, whilst NIM grew to 5.61 per cent from 5.57 per cent.

“The continuous rejigging of the Groups’ risk management approach resulted in moderation of the NPL ratio, from 3.6 per cent to 3.1per cent. The Group continued to rely on lower cost funds, further reducing its cost funds to 2.1 per cent.

“We are delighted with the strategic progress we have made in FY22 riding on our customers’ trust, the dedication of our people, and the support of our wider partners and stakeholders.

“The bank remains committed to its business development drive, prudent risk management practices, and we are optimistic to deliver best value for our stakeholders in the days ahead,” he noted.

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than 25 million customers, across over 1,000 business offices and customer touch points, in 20 African countries and across 4 continents.

With presence in the United States of America, the United Kingdom and France and more recently the United Arab Emirates, UBA is connecting people and businesses across Africa through retail; commercial and corporate banking; innovative cross-border payments and remittances; trade finance and ancillary banking services.

Commenting on the results, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc (GTCO Plc), Mr. Segun Agbaje, said, “Our ability to successfully navigate the peculiar challenges in the different markets where we operate underscores our strong business fundamentals and unwavering commitment to sound business strategies.

“Despite the varying challenges and headwinds that weighed on growth in 2022, we were determined to deliver a decent performance and scale effectively to strengthen our competitive edge and drive long-term growth.”

He further stated; “As an organisation, 2022 was quite significant for us being the first year after our corporate restructuring into a financial holding company in August 2021.

Today, across our Banking, Payment, Funds Management, and Pension businesses, we have successfully built a robust ecosystem with immense potential to deepen our addressable market and create more value for all our stakeholders.

“We will continue to prioritise innovation, service excellence, and execute seamlessly towards achieving our vision of leading financial services in Africa.”

Overall, the Group continues to post one of the best metrics in the Nigerian Financial Services industry in terms of key financial ratios i.e., Pre-Tax Return on Equity (ROAE) of 23.6 per cent, Pre-Tax Return on Assets (ROAA) of 3.6 per cent, Full Impact Capital Adequacy Ratio (CAR) of 24.1 per cent and Cost to Income ratio of 48.0 per cent.

GTCO is a leading financial services group with banking operations in Nigeria, West Africa, East Africa, United Kingdom alongside new businesses in Payment, Funds Management and Pension Fund Administration. Its leadership in the banking industry and efforts at empowering people and communities has earned it many prestigious awards over the years.

Recently, the Bank was recognized as Africa’s Best Bank and the Best Bank in Nigeria at the 2021 Euromoney Awards for Excellence. It also retained its position as Africa’s Most Admired Financial Services Brand in the 2021 ranking of The Brand Africa 100: Africa’s Best Brands.

The Chief Executive Stanbic IBTC Holdings, Dr Demola Sogunle in a statement said, “2022 was a peculiar year for us as a financial services provider within the Nigerian operating environment. Despite the volatile macro-economic indicators, coupled with varying regulatory burdens, we made substantial progress towards achieving our set financial goals based on our guidance for the year.

“We recorded growth in our profit metrics, loans and advances, and deposits during the year. The Group’s Profit After Tax increased by 42 per cent to N80.81billion, being the second highest PAT in the history of the organisation.

“This was largely attributable to significant increase in net interest income and growth in non-interest revenue. The 50per cent YoY increase in net interest income resulted from growth in the volume and average yield on cumulative risk assets while growing our loan book.

“In addition, non-interest revenue was driven by growth in trading revenue following an improvement in trading activities as well as 9 per cent growth in fees and commissions compared to the prior year.

“The improvement in our earnings led to an increase in our return on equity to 20.4 per cent from 14.7 per cent in 2021, well above our target range. Increased focus on our cost savings initiatives led to a moderation in our cost-to-income ratio to 53.9per cent from 62.3 per cent in 2021, which is in line with our target of at most 55per cent for the year.

“We particularly exceeded our guidance for loan growth as gross customer loans increased by 31per cent to N1.24 trillion, attaining the one-trillion-mark as we continue to support our clients in achieving their financial goals.

“The non-performing loan ratio moved up to 2.4 per cent, still within the acceptable limit of five per cent, as the total non-performing loans increased YoY due to proactive recognition of increased credit risks in specific clients. We will continue to extend loans in a responsible manner and in line with our established credit risk management practices.

“The increase in our loan book was funded by a 11per cent YoY growth in customer deposits. The current account to savings account ratio increased to 71.7 per cent, exceeding our target of at least 70 per cent due to accelerated growth in low-cost deposits.”

He added that, “We demonstrated our commitment towards promoting sustainable finance and climate action during the year as 32 bank branches and seven pension locations now run on solar powered energy solutions. We have also recycled 14 tonnes of waste papers in return for tissue papers during the year.

“We are sincerely grateful to our valuable customers, employees, investors, regulators, and other stakeholders for contributing to these achievements in 2022.”

On prediction for this year, he said, “In 2023, we will focus on our theme for the year- ‘Accelerating Growth’. We aim to accelerate growth in the areas such as digitisation, customer focused initiatives, ecosystems, and partnerships as well as value chain banking, all in a bid to deliver value to our esteemed stakeholders.”

Story behind the figures

Zenith Bank Plc: A profitable outing




Our analysis of Zenith Bank’s 2023 recent annual report shows that the year was quite a profitable one for the bank. Not only did the bank record a commendable growth in its turnover, it was also able to maintain such momentum to its profit.

As a direct fallout, the bank’s profitability ratios (such as profit margin, return on assets, return on equity, net interest margin and pre-tax profit per employee) remained high enough for the bank to remain relevant. It is important to note that the bank is also doing very well in its core banking operations.

Growth indices

For its 2023 financial year, the bank recorded a very commendable 125.4 percent growth in its turnover (inclusive of interest and discount income, and income from non-banking operations). Such turnover rose to an all-time high of N2.13 trillion from N945.6 billion in the preceding year.

It is worthy of note that while the bulk of the bank’s turnover was contributed via interest and discount income, it also stepped up the tempo of its non-core banking operations during the course of the year and earned significantly more money from there.

Pre-tax profit growth rate followed an even more commendable pattern, growing much more steeply as compared to the growth recorded in the prior year. Profit before tax obligations for 2023 stood at N795.9 billion, up from N284.7 billion in the erstwhile year, and translating into a 179.6 percent growth rate. After-tax profit followed the same pattern as pre-tax profit did, growing commendably by 202.3 percent over the preceding year’s level.

Total assets deployed by the bank for the 2023 year improved to a higher level of N20.4 trillion, about 65.8 percent higher than the N12.3 trillion assets deployed in December 2022, while shareholders’ funds advanced to N2.3 trillion from N1.4 trillion.

Profitability ratios

In all ways, the 2023 financial year was a profitable one for Zenith, as it recorded a marked improvement in almost all of its profitability ratios.

First, the bank did well in the execution of core banking operations, as shown by its net interest margin. Zenith recorded a net interest margin of 64.3 per cent. This interest margin, although lower than what the bank recorded in the preceding year, was on par with the industry average for 2023. This lower 64.3 percent net interest margin happened despite the increasing gap between the bank’s lending rate (which grew to 17.5 percent in 2023 from 13.5 percent in December 2022) and its deposit rate (which grew to 2.7 percent from 1.9 percent).

Profit margin also grew to 37.3 percent in 2023 from 30.1 percent in December 2022. What this means is that for every N100 earned by the bank in the course of the year, N37.30 made it to the profit position. This is as compared to N30.10 for the year preceding 2023.

Return on assets (ROA) also recorded an improvement. ROA grew to 3.9 percent in 2023 from 2.3 percent in December 2022. Analysis shows that every N100 worth of Zenith’s assets contributed N3.90 to its pre-tax profit in 2023, up from N2.30 in 2022.

For every N100 equity deployed, the bank made an after-tax profit of N29.10, up from N16.20 in the preceding year. Thus, return on equity for the year was also better than that of the prior year.

Asset quality

The proportion of Zenith’s gross loan stock that became classified in 2023 declined by increasing to 7.6 per cent from 5.8 per cent in 2022. Meanwhile, loan loss reserves for 2023 could cover only 20.4 percent of Zenith’s classified loans.

For 2023, the bank was not as careful to limit the portion of its equity stock that would be wiped out were its classified loans to become totally irrecoverable. Classified loans as a portion of shareholders funds stood at 23.4 percent in 2023, higher than 17.2 percent in 2022.

Staff matters

The bank did very well in matters regarding its employees for the year ended December 31 2023. Pre-tax profit per employee grew to N97.47 million on the average, better than the N35.25 million employees contributed on the average to the bank’s pre-tax profit in 2022.

The bank was, however, generous enough to compensate its employees more in 2023 than it did in December 2022. Average staff cost rose to N15.23 million from N10.69 million within the course of 12 months. This means that there was a N4.54 million addition to what an employee earned (on the average) between December 2023 and December 2022.

Despite the fact that it upped its staff costs, Zenith succeeded in deflating such staff costs as a proportion of income earned. Staff costs as a portion of turnover decreased to 5.8 percent in 2023 from 9.1 percent in December 2022.

Other ratios

Zenith’s equity (a company’s primary and cheapest source of funding) could finance 32.9 percent of the loans and advances it gave out to borrowers, down from 33.4 percent recorded in the erstwhile year.

Also, at 0.6 times, the current ratio was not on par with the industry average for 2023. What this means is that for every N1.00 of short-term obligations, the bank had only 60 kobo in short-term assets, and was not completely able to meet short term debts from short term assets.

Having a debt to equity ratio of 7.8 shows that the bank is using N7.80 of liabilities in addition to each N1.00 of stockholders’ equity. In other words, the bank is using N8.80 of total capital for every N1.00 of equity capital.

Return on equity

Another performance ratio in which Zenith did well was in its return on equity (ROE) of 29.9 percent. Zenith’s ROE for 2023 stood at 29.1 percent.

Return on assets

This was one of the ratios in which Zenith outperformed its peers. Its ROA was 3.9 per cent, higher and better.

Pre-tax profit margin

Although Zenith Bank was not able to grow its gross earnings and pre-tax profit as fast as its peers, it was however better able to translate its turnover into profit. For the 2023 financial year, pre-tax profit margin (which measures a company’s ability to squeeze as much profit as is possible from turnover) for Zenith Bank was 37.3 percent.


On its own, in a stand-alone analysis, Zenith Bank is doing quite well and this should be commended. It remains to be seen, however, if Zenith and UBA will be star performers in the banking industry for 2023, or if 2023 was a generally good year for all Nigerian banks.

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Story behind the figures

Honeywell Flour Mills Plc: A tough year



By Folakemi Emem-Akpan


Honeywell Flour Mills Plc went the way of most other Nigerian companies in 2023, recording lower turnover. It went one step further and recorded downright end of the year losses. Because of the losses, the company did not have good profitability ratios and seems to be floundering. All in all, it was a tough year for the company.

Growth indices

Honeywell followed the general rule of earning more income in 2023 than it did in 2022. The growth in gross earnings, at 8.0 percent, was however lower than most other companies recorded. Gross earnings stood at N147.3 billion, a little higher than N136.4 billion in the prior year. Even though the company was careful to curtail cost of sales, it couldn’t quite do the same for operating expenses (inclusive of advertising and promotion, distribution, administrative and interest expenses). These grew much faster collectively in 2023 than in 2022.

For the second year in a row, Honeywell recorded a loss rather than a pre-tax profit. Loss before tax obligations for 2023 stood at a staggering N8.9 billion, a deeper loss than the N170 million pre-tax loss recorded in the prior year. After-tax loss was N260 million for the 2023 financial year, still a loss, but better than the N980 million loss recorded in 2022.

Total assets deployed by the company for the 2023 year grew to N165 billion, 11 per cent more than the N148.7 billion assets deployed in 2022. Meanwhile, shareholders’ funds declined by 27.5 per cent to N32.0 billion in the review year.

Profitability ratios

Not only did Honeywell record losses instead of profitability on a stand-alone analysis basis for the 2023 financial year, all parameters also showed a regression when compared to its preceding years’ result. First to achieve a regression was the profit margin of the company. Instead of a profit margin, there was a loss margin of 6.0 percent, meaning that for every N100 earned by the company in the course of the year, N6.00 of it translated to loss. This is as compared to a loss of 10 kobo in 2022.

Also to record a decline was return on assets (ROA). Loss on assets was 5.4 percent, as compared to a loss on assets of 0.1 percent in the erstwhile year. For the 2023 financial year, Honeywell deployed equity valued at N32.9 billion and for every N100 equity deployed, the company made an after-tax loss of 78 kobo.

The operating margin (which measures what proportion of turnover a company spends on operations and which must be kept as low as possible without compromising standards) was one of the reasons for the company’s bad results for the year. This is because such operating margin was 6.9 percent, higher and worse than the 5.2 percent recorded in the prior year.

Staff matters

As regards staff matters, pre-tax loss per employee stood at N10.9 million on the average. This is as compared to the N204 million pre-tax loss employees contributed on the average to the company’s pre-tax loss in 2022.

Average staff cost then increased significantly to N8.84 million from N5.99 million within the course of 12 months. This means that there was a N2.85 million addition to what an employee earned (on the average) between 2023 and 2022.

Perhaps, because it increased its staff costs, Honeywell did not succeed in deflating its staff costs as a proportion of income earned. Staff costs as a portion of turnover grew to 4.4 per cent in 2023, higher than 3.6 percent in 2022.

Other ratios

At 0.9 times, Honeywell’s current ratio was a little lower than the industry average for 2023. What this means is that for every N1.00 of short-term obligations, the company had 90 kobo in short-term assets, and was not fully able to meet short term debts from short term assets.

Having a debt-to-equity ratio of 4.0 shows that the company is using N4 of liabilities in addition to each N1.00 of stockholders’ equity. In other words, the company is using N5.00 of total capital for every N1.00 of equity capital, higher than it did in 2022.

Honeywell Vs Flour Mills: Still a loss

We have established that Honeywell did not improve its lot when its results are compared on a year on year basis. We can also establish that Honeywell did not compete favourably against other companies in the flour milling business for the 2023 FY. A comparison against Flour Mills buttresses this point.

While Flour Mills is easily the bigger of the two companies (in fact, it is the parent company of Honeywell), a bigger size does not automatically translate into better profitability. For the 2023 review year, Flour Mills was also the clear leader in terms of performance. Of six profitability ratios examined, Flour Mills led in all.

Turnover growth rate

For the 2023 financial year, Flour Mills had a turnover growth rate of 32.8 percent, as compared to Honeywell’s turnover growth rate of 8 per cent for the same period under review. Analysis shows that Flour Mills was the winner in this respect.

Pre-tax profit growth rate

For the year, Flour Mills’ profit before tax grew by a mere 1.5 percent. Yet, this was much better than the 5,074 percent decline Honeywell recorded. However, it is also important to note that while Flour Mills witnessed an actual growth, Honeywell had a pre-tax loss of N8.9 million.

Between turnover and profit

For the 2023 financial year, pre-tax profit margin (which measures a company’s ability to squeeze as much profit as is possible from turnover) for Honeywell was actually a pre-tax loss margin of (6.1) percent. Flour Mills, on the other hand, had a better pre-tax profit margin of 2.6 percent.

Return on equity

Flour Mills led its peers in terms of return on equity (ROE), recording an ROE of 13.1 per cent. Analysis shows that while every N100 worth of equity deployed by Flour Mills earned it N13.10 in after-tax profit, such N100 equity deployed earned Honeywell 78 kobo as after-tax loss.

Return on assets

ROA for Flour Mills was 3.7 percent, down from 5.9 percent in the prior year. This means that of every N100 worth of assets deployed by Flour Mills, N3.70 accrued to it as pre-tax profit while Honeywell recorded a N5.40 pre-tax loss from every N100 worth of assets employed.

Pre-tax profit per employee

For the 2023 financial year, Flour Mills recorded a pre-tax profit per employee of N6.72 million, much better than Honeywell’s N10.9 million pre-tax loss per employee.


Honeywell’s loss for its 2023 financial year shows how events beyond a company’s control can have an effect, either negative or positive, on its bottom line. It is clear that the economic recession Nigeria has been experiencing had a severely limiting effect on Honeywell’s revenues and performance. It remains to be seen what the 2024 FY will hold for the company.

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Story behind the figures

PZ Cussons Plc: A commendable outing




A thorough analysis of PZ CussonsPlc current financial report shows that it is yet growing. It was able to step up the level of its business activities as shown by a growing turnover base. It was also able to increase profit during the course of the year. Profitability ratios for the year were a progression over the preceding year’s. Profit margin improved, as did return on assets, return on equity, and pre-tax profit per employee.

Truth be told, the conglomerate’s results for the 2023 financial year was extremely commendable, given the stressful operational environment in Nigeria for the review year.

Growth indices

For its 2023 financial year, PZ Cussons recorded a level of growth in all of its major parameters. First to receive a boost was the company’s gross earnings. Gross earnings for the year stood at N113.96 billion, 14.5 percent higher than the N99.5 billion recorded in the preceding year. This 14.5 percent growth rate is as compared to a higher growth rate of 20.5 per cent in 2022.

Because direct costs grew at a slower pace than turnover did, gross profit advanced by 35.6 percent to N32.9 billion. After deducting operating expenses from the gross profit and adding other income (including interest income), PZ Cussons was left with a pre-tax profit of N20.46 billion, a whopping 104.4 percent higher than the N10.01 billion pre-tax profit recorded in the erstwhile year. This 104.4 percent growth rate is as compared to a pre-tax profit growth rate of 213.8 percent in the preceding year.

After-tax profit (which was also the same as distributable profit) grew over the preceding year’s by as much as 114.2 percent to N14.35 billion. For the first time in a while, the conglomerate chose not to dedicate any portion of its distributable profit to dividend.  Thus, shareholders did not receive any dividend.

Total assets for the year stood at N166.38 billion, up from N109.47 billion in 2022 and translating into a 52.0 percent growth rate. Total liabilities also grew by 64.5 per cent to N118.0 billion from N71.73 billion while shareholders’ funds grew by 28.1 per cent to N48.36 billion from N37.74 billion in the erstwhile year.

Profitability ratios

For the year, operating margin (which calculates what proportion of turnover is used to finance operations) was 21.7 percent, slightly lower and therefore better than the 24.7 percent that was recorded in 2022. What this means is that the probable margin for PZ Cussons to be profitable expanded, albeit slightly during the course of the year.

Perhaps because of this, the profit margin for the year increased. Profit margin for 2023 stood at 18.0 percent, higher than 10.1 percent in the preceding year. What this means is that N18.00 made it to the profit position for every N100 earned in 2023, up from N10.10 in 2022.

Return on assets (ROA) followed the same pattern. ROA for the year increased to 12.3 percent from 9.1 percent in 2022, meaning that every N100 worth of assets deployed contributed N12.30 to the pre-tax profit for the year, higher than the N9.10 recorded in 2022.

Also, return on equity (ROE) grew to 29.7 percent from 17.8 percent, meaning that every N100 worth of equity employed contributed N29.70 to the after-tax profit in 2023, up from N17.80 in the prior year.

Our examination of this conglomerate’s profitability ratios shows that the company recorded quite a profitable year in 2023, which was not the case for many other manufacturing companies in Nigeria.

Staff matters

In terms of staff matters, the conglomerate did not do too shabbily for the year ended December 31 2023. On the average, each employee contributed N20.54 million to the company’s pre-tax profit, commendably up from N9.63 million in the prior year.

To this end, PZ Cussons reciprocated by increasing its staff cost per employee. On the average, wages and salaries earned by each staff increased to N8.04 million during the course of the year, up from N7.23 million in the preceding.

It is however worthy of note and laudable that despite increasing average staff costs, the company did not actually put itself out more than was necessary. Staff costs as a proportion of turnover decreased (and by so doing, improved) to 7 per cent.

Other ratios

For the year, PZ Cussons’ short-term assets increased to N148.1 billion while its short-term liabilities increased to a collective N94.68 billion. The interplay between these two had an upping effect on its current ratio. At 1.6 times (higher than 1.4 in the preceding year), current ratio was on par with industry standards. What this means is that for every one Naira of short-term obligations, the company had N1.60 in short-term assets, and was more than able to meet obligations as at when due.

The company had a debt-to-equity ratio of 2.4 and this shows that the company is using N2.40 of liabilities in addition to each N1.00 of stockholders’ equity. In other words, the company is using N3.40 of total capital for every N1.00 of equity capital.

PZ Cussons Vs Nestle: PZ Cussons larger and superior

PZ Cussons Plc and Nestle Nigeria Plc are competitors, and both have been operating in the Nigerian conglomerate scene for years. While Nestle is currently the bigger of the two in terms of sales generation and assets employment, PZ Cussons is better when it comes to profit retention. Of the six profitability ratios we examined, Nestle only took the lead in turnover growth rate, while PZ Cussons took the lead in the remaining five.

Sales generation and profit retention

As usual, Nestle recorded more sales in 2023 than PZ Cussons did. Also, Nestle’s growth rate for the year was much better than PZ Cussons.’ This said, PZ Cussons excelled better in translating its sales into profit. It had a positive pretax profit growth rate as compared to Nestle’s decline rate. It also had a profit margin, as compared to Nestle’s loss margin for the year under review.


PZ Cussons recorded better returns on assets and on equity for the 2023 financial year. Return on assets (ROA) and return on equity (ROE) were 12.3 percent and 29.7 percent respectively. Meanwhile, Nestle had negative returns. For Nestle, ROA was negative 17.9 per cent while ROE was negative 101.9 per cent.


In an operating environment where most companies recorded either negative or slowed down profitability ratios, PZ Cussons is an exceptional, a very laudable one. Its ability to not only generate sales but also to maximise profits for the 2023 financial year is indeed commendable.

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