PZ Cussons' interim financial results for the second quarter of fiscal year 2024/25 report a pre-tax loss of N301.7 million. This represents a significant improvement from the N35.1 billion loss in the prior year's corresponding quarter, a 99.14% reduction in losses. This positive change is attributed to increased revenue, reaching N69.1 billion year-to-date.
The company achieved quarterly revenue of N56.4 billion, reflecting a 52.57% increase from the N37 billion reported in the corresponding quarter of 2023/24. Additionally, PZ Cussons experienced an impressive year-over-year growth of 859.86% in 'other income,' totaling N726.8 million, bolstered by rental income and scrap sales amounting to N469.7 million and N500.2 million, respectively.
Key highlights are as follows: Revenue reached N56.4 billion, reflecting a year-over-year increase of 52.57%. Cost of Sales amounted to N41.6 billion, up 68.48% compared to the previous year. Selling and Distribution Expenses totaled N4.3 billion, marking a 12.47% rise year-over-year. Operating Profit stood at N48 million, a decline of 100.13% from the prior year. Other Income surged to N726.8 million, an impressive increase of 859.68% year-over-year. Net Interest Income was recorded at N1 billion, up 169.80% year-over-year. The Pre-tax Loss was N301.7 million, a decrease of 99.14% compared to the previous year. Basic EPS was reported at (N0.59), down 93.40% year-over-year. Total Assets reached N173.9 billion, reflecting a year-over-year growth of 10.78%.
The company reported a notable year-over-year revenue growth of 52.57%, reaching N56.4 billion for the quarter, which brings its total revenue for the nine-month period to N96.4 billion. However, this growth was accompanied by a significant increase in the cost of sales, which rose by 68.48% to N41.6 billion from N24.7 billion in the same quarter last year. Selling and distribution expenses also increased by 12.47%, reaching N4.3 billion compared to N3.8 billion in the prior year.
Despite these financial challenges, the company effectively reduced its foreign exchange losses to N5.8 billion, a significant decrease from the N42.5 billion reported in the same period last year. Furthermore, PZ Cussons improved its operating performance.
Other income demonstrated exceptional growth of 859.86% year-over-year, reaching N726.8 million, with rental income and scrap sales contributing N469.7 million and N500.2 million, respectively. As a result, the company successfully reduced its pre-tax loss from N35.1 billion in the previous year to N301.7 million for the period ending November 30, marking a significant decrease of 99.1%.
Asset Position
In the most recent quarter, the company reported total assets of N173.9 billion, reflecting a notable increase of 10.6% from N157 billion in the prior quarter. This growth is highlighted by significant improvements in both non-current and current assets.
Non-current assets experienced a slight increase of 0.16%, rising to N49.69 billion from N49.61 billion. This growth was largely attributed to enhancements in property, plant, and equipment, which totaled N14.9 billion. Leasehold land and buildings represented a considerable portion of this category, amounting to N8.2 billion out of the N14.9 billion in property, plant, and equipment, emphasizing the company’s commitment to investing in its physical infrastructure.
Current assets saw a substantial increase of 15.6%, climbing to N124.2 billion from N107.4 billion. This remarkable growth was primarily driven by a significant rise in inventories, which surged by 31.5%, reaching N53.7 billion from N40.8 billion. Within this inventory, raw materials and consumables accounted for N19.3 billion, while finished goods and goods available for sale contributed N18.6 billion.