Subject: PZ Cussons Nigeria Returns to Profit in FY 2025 with N5.54bn PAT on Strong Revenue Growth and FX Loss Reduction
PZ Cussons Nigeria Plc has staged a remarkable financial turnaround for the year ended May 31, 2025, posting a profit after tax (PAT) of ₦5.54 billion, a sharp recovery from the ₦76.02 billion loss reported in the same period of 2024. The result reflects improved operational execution and a significant reduction in foreign exchange losses.
🔑 Key Financial Highlights (Q1 2025)
- Revenue rose by 40% year-on-year to ₦212.63 billion (FY 2024: ₦152.25 billion), reflecting increased market penetration and stronger pricing power.
- Cost of Sales increased to ₦154.9 billion from ₦98.1 billion, in line with volume growth and inflationary input costs.
- Gross Profit inched up to ₦57.70 billion from ₦54.13 billion, supported by resilient topline growth.
- Operating Profit rebounded to ₦17.31 billion compared to a ₦127.43 billion operating loss last year.
- Profit Before Tax came in at ₦16.86 billion, versus a ₦108.10 billion pre-tax loss in 2024.
- Foreign Exchange Losses drastically reduced to ₦7.78 billion, down from ₦157.92 billion in the previous year—a major contributor to the bottom-line recovery.
- Tax Expense stood at ₦11.32 billion, lower than ₦32.17 billion in the prior year.
- Net Profit Attributable to Equity Holders reached ₦5.64 billion, up from a loss of ₦68.41 billion.
- Basic and Diluted EPS turned positive at ₦1.00, versus a loss per share of ₦19.00 in FY 2024.
⚙️ Operational and Financial Drivers
- Efficiency Gains: Improved cost controls and leaner operations contributed to the return to profitability despite rising cost of sales.
- FX Management: The steep drop in foreign exchange losses—₦7.78bn vs. ₦157.92bn—reflects effective risk management and/or more favourable currency conditions.
- Interest Income rose to ₦1.33 billion, while interest expenses fell slightly to ₦3.59 billion, resulting in a manageable net finance cost of ₦2.26 billion.
📈 Strategic Outlook
The Q1 2025 performance reflects a strong pivot by PZ Cussons Nigeria from a period of crisis to one of stabilisation and growth. With earnings momentum restored and operational efficiencies visibly improving, the company appears poised to regain investor confidence. While cost pressures persist, the subdued FX losses and return to profitability mark a strong foundation for future earnings expansion.
Longer-term, if PZ Cussons sustains this strategic discipline—particularly around supply chain management, product pricing, and currency hedging—it may evolve from a recovery play into a reliable earnings compounder in the Nigerian consumer goods space.
🧾 Summary
PZ Cussons’ Q1 2025 results underscore the value of strategic restructuring and FX risk mitigation. The company has not only stemmed historic losses but has emerged with a leaner cost base and stronger topline resilience. Investors would be right to view this as a credible turnaround story, with Q1 2026 performance likely to build on these gains.
Disclaimer
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