PZ Cussons Nigeria returns to profitability with N49.1bn full-year earnings

PZ CUSSONS Nigeria Plc has returned to strong profitability, posting a profit after tax of N49.1 billion for the financial year ended May 31, 2026, as revenue climbed on the back of stronger sales and the company’s foreign exchange (FX) gains and other income.

According to its unaudited fourth-quarter financial statements released on Tuesday, the consumer goods manufacturer reported revenue of N260.46 billion, representing a 22.5 per cent increase from N212.63 billion recorded in the corresponding period of 2025.

Cost of sales rose to N187.19 billion from N154.93 billion, while gross profit increased by 27 percent to N73.27 billion, compared with N57.71 billion a year earlier.

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The company recorded an operating profit of N77.06 billion, a sharp increase from N18.92 billion in the previous financial year. The improved performance was supported by N39.82 billion in other income and an N11.84 billion FX gain, compared with a N7.78 billion FX loss recorded in 2025.

Profit before tax surged to N77.32 billion from N16.66 billion despite an income tax expense of N28.22 billion. Profit after tax stood at N49.10 billion, nearly five times the N10.07 billion reported in the previous year.

Earnings attributable to shareholders rose to N46.82 billion from N9.21 billion, while basic and diluted earnings per share increased to N11.80 from N2.30.

For the fourth quarter alone, PZ Cussons Nigeria reported a profit after tax of N9.99 billion, reversing the N1.22 billion loss posted in the corresponding quarter of the previous year. Quarterly revenue rose to N63.24 billion from N58.22 billion.

The company’s financial position strengthened significantly during the year. Total equity improved to N70.57 billion from a negative equity position of N17.34 billion in the previous year, reflecting stronger retained earnings and capital contributions arising from debt waivers by its parent company.

PZ Cussons Nigeria also reduced its debt profile, with borrowings falling sharply to N5.9 billion from N71.27 billion a year earlier. Trade and other payables declined to N76.46 billion from N105.15 billion.

Cash and cash equivalents stood at N41.32 billion, up slightly from N40.66 billion in 2025, while inventories increased to N61.27 billion from N53.50 billion.

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Total assets stood at N161.13 billion at the end of the financial year, compared with N168.90 billion a year earlier, while total liabilities declined significantly to N90.56 billion from N186.24 billion.

The board approved the unaudited fourth-quarter and full-year financial statements on June 30, 2026, noting that the company’s capital position was further strengthened by debt waivers from its parent company in 2024 and 2026.