PZ Cussons cuts pre-tax losses by 86%, boosts revenue for period ending August 31

PZ Cussons Nigeria Plc reported a pre-tax loss of N5.2 billion in its interim financial statements for the period ending August 31, 2024.

This figure represents an 86 percent year-over-year improvement compared to the N38.6 billion pre-tax loss the group recorded in the same period last year.

Despite this loss, the group experienced a surge in revenue, which rose by 29 percent year-over-year to N39.9 billion in the quarter ending August 31, 2024, compared to N31.0 billion in the same period last year.

PZ Cussons Nigeria Plc saw a 29 percent year-over-year growth in revenue, increasing from N31.0 billion in Q2 2023 to N39.9 billion in Q2 2024.

However, the rise in revenue was accompanied by a proportional increase in the cost of sales, which also jumped by 29 percent year-over-year to N27.7 billion, up from N21.5 billion in the same period last year.

As a result, the group generated a gross profit of N12.2 billion, reflecting a 27 percent year-over-year increase compared to N9.6 billion in 2023.

However, administrative expenses surged by 50 percent, reaching N3.6 billion in Q2 2024, compare d to N2.4 billion in the previous year.

Furthermore, the group faced substantial exchange losses, amounting to N9.2 billion, though this figure represents a 79 percent improvement from the N44 billion exchange loss recorded last year.

It posted a negative net interest value which declined by 174 percent year-over-year to N1.1 billion.

Despite these costs, PZ Cussons Nigeria Plc was able to reduce its pre-tax loss from N38.6 billion in 2023 to N5.2 billion in 2024, depicting an improvement.

Additionally, the company’s earnings per share saw an 88 percent recovery, moving from a negative N9.73 per share in 2023 to N1.17 per share in 2024.

PZ Cussons’ total assets grew by 8 percent to N169.7 billion as of Q2 2024, compared to N157 billion in the same period last year.

However, current liabilities also rose by 10 percent year-over-year, standing at N136.7 billion compared to N123.8 billion in 2023.

While PZ Cussons Nigeria Plc reported pre-tax losses in the first quarter ending August 31, the group’s financial performance shows significant improvement in areas, such as revenue growth and reduced pre-tax losses.