PZ Cussons Nigeria has announced a 33.33 per cent decline in first quarter (Q1)) unaudited result which ended in March 2015.
The result released to the Nigerian Stock Exchange (NSE) showed profit after tax (PAT) at N428 million in Q1 2015 dropping from N641.7 million in Q1 2014.
Profit before tax (PBT) dropped 37.32 per cent, from N872.3 million in Q1 2014 to N546.8 million in Q1 2015.
The decline in profit can be attributed to decline in revenue, which recorded 0.44 per cent loss, from N15 billion to N14.95 billion in Q1 2015; while finance cost rose from N40.77 million to N164.6 million.
Decline in profit dragged earnings per share to N0.11 from N0.16.
PZ Cussons said recently in its trading statement that the restriction of dollar availability for certain items by the Central Bank of Nigeria (CBN) has a major impact on its revenue and finance charges.
Analysts at FBN Capital explained that increased finance charges and challenges in the macroeconomic environment and an extremely competitive market also affected the company’s result.
PZ Cussons shareholders at the 67th annual general meeting (AGM) approved a final dividend of N2.42 billion, a payment of 61 kobo per share.
This is in addition to the N794 million interim dividend (20 kobo per share) paid in March, and it brings the total dividend payout to N3.21 billion.
PZ Cussons Chairman, Kola Jamodu, said despite the adverse economic conditions in the country, including increasing competition, turnover grew from N72.9 billion to N73.1 billion.
He confirmed that the balance sheet remains strong with total assets of N67 billion and no debt.
Jamodu said in spite of the tough operating environment, the company performed well compared to competitors.
“Our focus in driving shareholder value through improving efficiencies in the supply chain and continuous investment in the brands that delight our consumers was sustained during the year.
“The white goods business experienced volume and top line growth despite increasing competition from global brands and cheap low quality imports,” he stressed.
He assured shareholders that the company would continue to invest in its core brands and growth categories.