Even though PZ Cussons Plc recorded a declining profit for the financial period, ended 31st May 2015 when compared with the same period last year, there signs of efficient management as it increased liquidity and the capacity to repay its debts by 11 per cent.
Nigeria is PZ Cusson’s largest and most diverse single market, operating in Personal Care, Home Care, Food and Nutrition and Electricals.
The result showed that revenue increased slightly by 0.30 per cent from N72.9 billion recorded in 2014 to 73.1 billion in 2015.
Gross profit grew to N20.5 billion from N19.2 billion in 2014 increasing gross profit margin to 27.9 per cent from 26.3 per cent while operating profit margin decreased 0.5 per cent to 9 per cent from 9.5 per cent in 2014.
Profit before tax decreased 5.7 per cent from N6.9 billion recorded in 2014 to N6.6 billion due to a 7.06 per cent increase in operating expenses to N13.8 billion from N12.9 billion in 2014.
Profit after tax declined 10.1 per cent to N4.6 billion from N5.1 billion posted in the period under review. This can be attributed to the increase in expenses which is at 7 per cent compared to the reduction of over 50 per cent experienced in interest income and other income.
Interest income reduced to N228.8 million from N508.4 million while other income dropped to N121.9 million from N281.04 million.
Statement of financial Position indicated a 9.27 per cent decline in total current assets from N46.5 billion to N42.2 billion, current liabilities dropped N4.5 billion to N4.2 billion while Net assets appreciated 2.67 per cent from N42.5 billion to N43.7 billion in 2015.
Fixed asset turnover a measure of the sales productivity and utilization of plant and equipment remained unchanged at 2.9 over both periods under review.
Net profit margin fell to 6.25 per cent in 2015 from 6.97 per cent in 2014 while Return on equity declined to 11.03 per cent from 12.53 per cent showing reduction in profit generated from the fund’s shareholders invested, reducing shareholder earnings 11.7 per cent to N1.02 from N1.16
PZ Cussons increased liquidity and the capacity to repay its debts by 11 per cent as current ratio increased to 2.15 from 1.94.
Shares of PZ Cussons Plc have been on a positive trajectory in its last three trading sessions as it appreciated from N25 on the 9th of September to close at N27.30 on Friday, September 11th.
It has outstanding shares of 3.97 billion with market capitalization of N108.3 billion.
PZ Cussons Plc has proposed a final dividend of 61 kobo with closure date scheduled for 14th -18th September 2015 while Dividend payment date is on 30th September, a day after the annual general meeting at Transcorp Metropolitan Hotel Calabar.
By Pita Ochai