PZ Cussons Nigeria Plc has staged a dramatic financial turnaround, reporting a robust profit after tax of N5.54 billion for the fiscal year ending May 31, 2025. This remarkable recovery follows a substantial loss of N76.02 billion incurred in the corresponding period of 2024. The company’s unaudited financial statements, released on the Nigeria Exchange Limited, reveal a significant improvement across key financial indicators. Revenue surged by 40% to N212.63 billion, compared to N152.25 billion in the previous year. This impressive growth in revenue, coupled with improved operational efficiency and a drastic reduction in foreign exchange losses, spearheaded the company’s return to profitability. The positive financial performance represents a significant achievement for PZ Cussons, signaling a revitalized business strategy and renewed investor confidence.
A closer examination of the financial results reveals a significant improvement in profitability metrics across the board. Gross profit, while showing a more modest increase, reached N57.70 billion, up from N54.13 billion in 2024. Operating profit witnessed a dramatic swing, shifting from a substantial loss of N127.43 billion in the prior year to a positive N17.31 billion. Similarly, profit before tax soared to N16.86 billion, marking a 116% increase from the previous year’s loss of N108.10 billion. This substantial improvement underscores the effectiveness of the company’s strategic initiatives in mitigating losses and optimizing operational performance. The revitalized financial standing positions PZ Cussons for future growth and expansion.
A key driver of the improved financial performance was the substantial reduction in foreign exchange losses. In 2024, the company incurred a staggering N157.92 billion loss due to foreign exchange fluctuations. However, in 2025, this loss was dramatically curtailed to N7.78 billion. This significant reduction demonstrates the company’s proactive measures in managing foreign exchange risks and its ability to navigate volatile market conditions. Furthermore, tax expenses also decreased significantly, dropping from N32.17 billion in 2024 to N11.32 billion in 2025. This reduction in tax burden further contributed to the overall improvement in profitability.
The positive impact of the financial recovery is also reflected in the earnings per share (EPS). Basic and diluted earnings per share turned positive at N1, compared to a loss per share of N19 in the previous year. This significant turnaround in EPS signifies the improved financial health of the company and its ability to generate value for its shareholders. Profit attributable to equity holders of the parent company reached N5.64 billion, a stark contrast to the N68.41 billion loss recorded in the prior year. These positive figures underscore the effectiveness of the company’s turnaround strategy and its ability to deliver strong financial results.
While revenue and profits witnessed significant increases, cost of sales also saw a substantial rise, climbing to N154.9 billion from N98.1 billion in 2024. Despite this increase, the company managed to maintain a healthy gross profit of N57.7 billion, slightly higher than the N54.1 billion recorded in the previous year. This suggests effective cost management strategies despite rising input costs. Interest income saw a marginal increase to N1.33 billion from N1.11 billion, while interest expenses decreased slightly to N3.59 billion, resulting in a net interest cost of N2.26 billion.
In a strategic move, PZ Cussons has decided to divest its 50% stake in PZ Wilmar Limited to its joint venture partner, Wilmar International Limited, for $70 million. This transaction marks the company’s complete exit from the Nigerian palm oil business, which it co-founded in 2010. While the reasons for the divestment have not been explicitly outlined in the provided information, it can be speculated that this strategic move is part of a broader portfolio optimization strategy, potentially allowing PZ Cussons to focus on its core businesses and further strengthen its financial position. The proceeds from the sale will likely contribute to the company’s overall liquidity and provide resources for future investments and growth initiatives.
