PZ Cussons slashes pre-tax losses by 99.1% amid rise in working revenue and scrap gross sales 

PZ Cussons has introduced its interim monetary statements for the second quarter of 2024/25, reporting a pre-tax lack of N301.7 million, a major enchancment from N35.1 billion seen in the identical quarter of 2023/24.

This represents a 99.14% discount in losses, pushed by a rise in income with a year-to-date determine of N69.1 billion.

The corporate recorded quarterly income of N56.4 billion, reflecting a 52.57% rise year-over-year from the N37 billion reported within the earlier 12 months.

Moreover, PZ Cussons famous an 859.86% year-over-year improve in ‘different earnings,’ which reached N726.8 million, supported by rental earnings and scrap gross sales totalling N469.7 million and N500.2 million, respectively.

Key highlights

• Income: N56.4 billion, +52.57% YoY
• Value of Gross sales: N41.6 billion, +68.48% YoY
• Promoting and Distribution Bills: N4.3 billion, +12.47% YoY
• Working Revenue: N48 million, -100.13% YoY
• Different Earnings: N726.8 million, +859.68% YoY
• Internet Curiosity Earnings: N1 billion, +169.80% YoY
• Pre-tax Loss: N301.7 million, -99.14% YoY
• Primary EPS: (N0.59), -93.40% YoY
• Belongings: N173.9 billion, +10.78% YoY

Commentary

The corporate reported a commendable year-over-year income improve of 52.57%, reaching N56.4 billion for the quarter, which elevates its nine-month income to N96.4 billion.

• Nonetheless, alongside this development, the price of gross sales additionally surged by 68.48%, rising to N41.6 billion from N24.7 billion in the identical quarter final 12 months.
• Moreover, promoting and distribution bills rose by 12.47%, climbing to N4.3 billion from N3.8 billion within the earlier 12 months’s interval.

Amid these monetary pressures, the corporate efficiently mitigated its international change losses, lowering them to N5.8 billion from a staggering N42.5 billion reported throughout the identical interval final 12 months.

• Moreover, the corporate rotated its working efficiency, recovering from the earlier 12 months’s working lack of N36.7 billion to attain a modest working revenue of N48 million.
• Considerably, different earnings skilled a outstanding development of 859.86% year-over-year, totalling N726.8 million, with rental earnings and scrap gross sales contributing N469.7 million and N500.2 million, respectively.

Consequently, the corporate managed to lower its pre-tax loss from N35.1 billion within the prior 12 months to N301.7 million for the interval ending November 30, leading to a powerful discount of 99.1%.

Asset place 

Within the newest quarter, the corporate reported whole property amounting to N173.9 billion, reflecting a powerful improve of 10.6% from N157 billion within the previous quarter.

This development is underscored by notable developments in each non-current and present property.

Non-current property noticed a modest rise of 0.16%, growing to N49.69 billion from N49.61 billion.

• This development was primarily pushed by an enhancement in property, plant, and tools at N14.9 billion.

• Notably, leasehold land and buildings constituted a considerable section of this class, totalling N8.2 billion out of the N14.9 billion in property, plant, and tools, underscoring the corporate’s ongoing funding in its bodily infrastructure.

Present property exhibited a surge of 15.6%, rising to N124.2 billion from N107.4 billion.

• This spectacular development was primarily fuelled by a major improve in inventories, which soared by 31.5%, rising to N53.7 billion from N40.8 billion.

• Inside this stock, uncooked supplies and consumables accounted for N19.3 billion, whereas completed items and items obtainable on the market contributed N18.6 billion.