PZ Cussons Nigeria Plc has reported a loss after tax of N212.358 million for the first quarter ended August 31, 2020 as against a loss of N1.095 billion posted in 2019.
While the group’s revenue increased by 18.3 per cent to N18.700 billion from N15.808 billion in 2019, cost of sales stood at N13.808 billion from N7.620 billion in 2019.
The group posted a loss after tax of N7,239 billion for the full year ended May 31, 2020 as against profit after tax of N1.155 billion in 2019. Revenue was N66.992 billion in 2020 from N74.336 billion in 2019, a drop of 9.88 per cent.
Cost of sales stood at N58.370 billion in 2020 from N57.235 billion in 2019. In the half year results of the company ended November 30, 2019, the makers of several household products in the country said its revenue declined by 3.2 per cent to N33.95 billion from N35.05 billion achieved in the first half of last year.
Cost of sales rose to 7.46 per cent from N26.224 billion in 2018 to N28.153 billion in 2019 However, selling and distribution costs reduced to N4.63 billion from N5.12 billion, while the administrative expenses rose to N2.67 billion from N1.99 billion, with an loss after tax of N1.580 billion as against a profit of N1.221 billion in the same period of last year.
Cosmetics and soap maker PZ Cussons Plc reported lower half-yearly profits due to weak consumer spending in its major markets.
The company is facing a host of challenges both at home as well as in its African business that makes up more than a third of revenue, as Britons cut back on spending and demand for personal care brands dwindles in key African markets.
According to reports, PZ also reported lower revenue for the first half, but expressed optimism for the second half. Still, full-year revenue and adjusted profit before tax is expected to be modestly below the prior year on a like-for-like basis, the company said in a statement.
The company had at the company’s 70th Annual General Meeting (AGM) in Abuja informed shareholders that cost of borrowing (about 20 per cent) affected the company’s performance, adding at it largely affected cost of its goods and also, acerbated by low volume of sales.
PZ Cussons Nigeria has said its shareholders and other stakeholders should expect better value in coming years, even as it restated its confidence in the Nigerian economy.
The Chief Executive Officer, PZ Cussons Nigeria, Mr Christos Giannopoulos, said that having operated in Nigeria for 120 years and listed on the Nigerian Stock Exchange for 48 years, the company was well positioned to deliver better value in the years ahead.
Giannopoulos, while speaking at the closing gong ceremony at the NSE to mark the company’s 120th anniversary, said, “We are very proud to be here today. Contrary to reports some months back, I want to reiterate that PZ Cussons is here to stay. We are not going anywhere.