By Nneka Nwogwugwu
Producer of personal healthcare and consumer goods, PZ Cussons Plc has returned to profitability after the world experienced economic downturn following COVID-19 pandemic.
This was made known after the company recently released its 12-months financial performance report for 2021.
PZ Cussons posted a revenue increase of 23 percent to N82 billion in the period under review from N66.9 billion in 2020 while its gross profit surged by 170 percent from N8.6 billion to N23.2 billion, Business Day reports.
Its cost of sales stood at N59 billion which was a marginal 1.2 percent increase from the N58 billion utilized in 2020, while its operating profit dropped by 50 percent to N3 billion from N6 billion in 2020.
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The manufacturer’s profit before tax grew by 133 percent to N2.6 billion from a loss of N7.9 billion in the same period of 2020. Following a tax payment of N808 million, its profit after tax hit N1.83 billion which is a 125 percent increase from the N7.23 billion loss it realized in 2020.
PZ revenue was also helped by the sale of factory premises situated within plot 20A Ikorodu Industrial Scheme, Ikorodu, Lagos. The approximately 67,733.235 square metres property was sold to Friesland Campina Wamco Nigeria Plc.
The company received a sum of N2.1 billion as consideration for the sales resulting in profit on disposal of N1.899 billion subject to a capital gains tax of N199.8 million.
Its interest income dropped by 21.8 percent as it achieved N238 million during the period from N304 million in the previous year, also Its total assets increased by 11.8 percent from N78.45 billion in 2020 to N87.74 billion in 2021. PZ’s liabilities increased to N51.7 billion representing 18 percent increase from the N43.8 billion it had in 2020.
Due to issues around foreign exchange availability and naira devaluation, the firm experienced foreign exchange loss of N6.5 billion which is a significant 595 percent increase from the N945 million it lost in the same period of 2020.
